After paying the bills, mortgage, and if you have kids, tuition fee, is there enough money left to cover other costs? According to financial specialists, 50% of your income should cover food, housing, and other necessary payables, while 30% should go to things like travel and other hobbies. So, where does the 20% go? The remainder of your pay should go to insurance and savings. But is there even enough left after paying the necessities?
If you find yourself not having enough after paying all the bills, you’re not alone. In fact, only 19% of Americans think they’re earning enough. Here are some tips on how you can stretch that dollar:
Many still find getting insurance unnecessary. What they don’t realize is having vehicle insurance in Cicero, Illinois, for instance, can save you hundreds (if not thousands) of dollars in the long run. The same goes with a health insurance policy. Depending on your coverage, most insurance policies protect the holder from financial liability and provide medical coverage.
Pay Off Debt
In the age of credit cards and online shopping, acquiring more debt can only take a few seconds. Before swiping that credit card or applying for a loan, pay off existing ones first. You might not notice it, but keeping your debt for years can cost you even more money long term. Once you’ve paid off any existing loans, you’ll find you have enough money for saving up.
Avoid Shopping Online
Rather, shop only when you need to, especially if it’s online. It’s so easy to find and buy something online, making it easier to shop on impulse. You might have heard this before, but the same rule applies to online stores—visit them only when you’re looking for something specific to buy. Otherwise, avoid downloading shopping apps or visiting these websites.
These are just simple measures that can help you stretch the money you make. Saving money is a habit that eventually becomes a lifestyle. Take small steps and see how this would eventually change your financial status.