Buried in heavy loans and debts and living a life from paycheck to paycheck is a curse. A couple in Chicago facing the same situation in 2014 planned to save money and banked $50000 in 2016. Financial blogger Matt and his fiancée managed to save $50000 in one year by cutting the costs down. Ther upped their savings in just 12 months.Matt shared some of his money saving tips in his blogs.
He and his fiancée used various strategies to cut the fat down but the most effective one for money saving was to spend the least on the living place. They are living a happy life in a tiny home of one bed and one bath. Matt revealed that they pay less than 15% of their money on their 700-square-foot condo in Chicago.
“Our choice of living has been, from a numbers perspective, the biggest factor when it comes to doubling our savings rate in 2016 and helping us build wealth rapidly,” Matt writes on his blog, “Distilled Dollar.”
They are living in a place where people spend more than $1000 a month on a two bed/two bath apartment. This means that Matt and his fiancée are saving $12000 a year by cutting down the cost for housing.
“Instead of paying for a second bedroom that I would use 10 percent of the time as an office, or a second bathroom that would be utilized only in the mornings when we find ourselves getting ready at the same time, we’re instead making massive strides towards securing our financial freedom,” Matt writes.
Their second strategy was to choose their living place within a walking distance to work. This made them save another $9000 a year by walking to their workplace instead of spending it on transport.
They also saved money by buying less stuff for their home. Matt tells CNBC: “We also need less stuff to fill our place, and we feel less social pressure to buy more things to match our living situation.”
Of course, they’d certainly “enjoy the perks living in a place that we should be able to afford,” Matt writes. “However, we’re happier going against the grain to pursue our financial independence at an early age.”
Matt’s tips show that we don’t need to make drastic changes in our lifestyle to save money. Rather there are a lot of simple options for cutting down the expenses without feeling deprived of a happy lifestyle. Just spend the money in ways that reflect your priorities in life. Save money to let it buy your happiness instead of burdening yourself with extra expenses.