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Abstract

ely low cost of living. The strategy might be essential for big spenders who also want to save.Your Audi payment is $643.50 a month. You have a choice to make here. When that car payment goes from your bank account to the finance company, you can divert$ 6.50 to your savings or investment account. This is rounding up. However, you could direct $56.50. Also rounding up.Apartment rent —$ 2,612. Here again, are you going to save $8,$ 38, or $82?You have an amazing steak dinner with your person and finish off a$ 160 bottle of wine. Exquisite. Total tab with tip: $540. Will you sock away$ 10 or $60?Anybody can do this, but if you have tons of money going out each month, you might need to execute this strategy a bit harder and more methodically than most.Maybe you’ll round to nearest ten or fifty on a handful of expenditures. To the next hundred or even thousand on others. To each their own. However you decide to do it, it adds up. It matters.<h1 id="00f3">Pay Yourself First</h1><a href="https://readmedium.com/financial-flexibility-not-freedom-1e2976627701">I’m on record as being against pay yourself first</a>. But I only oppose it within the context of an insanely low cost of living.With ultra low expenses, you’ll presumably have ample cash left over at the end of the month to save and invest. Psychologically, it works better for me to meet my obligations and pay myself last.If you spend a lot of money, it absolutely makes good practical sense to set aside a percentage of your income and automatically save it prior to paying your bills and making discretionary purchases. You’ll eliminate the possibility that the end of the month comes and there’s no money left to save.Combine rounding up with paying yourself first — preferably alongside moderate to high income — and you’re probably going to be in excellent shape even if you have a penchant for spending.<h1 id="db3f">Don’t Take on Debt</h1>Other than the mortgage and Audi payment (insert smiley f

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ace here!), eschew debt. This is more psycho-emotional than pragmatic.I used to live beyond my means. I spent all of my money each month on stuff. On nice things and ephemeral “experiences,” such as dinners and hotel stays.My mind played a cruel trick on me.I started to think I was not only entitled to this lifestyle, but that I had some obligation to myself and a few of those around me to maintain it. So when I didn’t have the money to do something, I put it on a credit card. This is where the vicious cycle takes hold. You get swept up in it without even noticing.This said, if you refuse to accumulate debt, you might be able to pull off high spending alongside significant saving, particularly if you make a lot money.If you take home $10,000 a month and spend$ 8,000 of it, you could be saving $2,000. That’s not bad. It’s more than countless numbers of people save on the regular.While I don’t advocate this type of budget, I’d do myself and my writing a disservice if I didn’t consider and honestly acknowledge that it can work, even if it’s not how I choose to proceed.I dislike dogma. Personal finance and self-help gurus who claim to tell it like it is. It’s their condescending way or the shame-ridden highway. This approach serves nobody and nothing, except for the needy ego of the self-proclaimed expert.I don’t care what you do. I care about you. I hope you feel the same way about me.As long as you’re not hurting anyone (though, some argue we all are by participating in our money-centric economy), it doesn’t matter how you survive, thrive, and attain a state of contentedness or, maybe even, happiness.I’ll simply be thrilled to see you get there. All the better if you’ve read one of my articles along the way.This article is for informational purposes only, it should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.</article></body>

How to Save Money When You Have an Insanely High Cost of Living

Tricks to help keep some cash when you spend a lot on needs and wants

Some people will never have an insanely low cost of living. In fact, they’ll never even have a low cost of living. They’ll keep insanely high costs of living. And that’s okay.

Just because I preach relative frugality to help build wealth doesn’t mean it’s for everyone. And it doesn’t have to be. Some people don’t want or simply can’t have a low cost of living. It’s a personal decision, not some writer’s personal finance prescription.

You might want a nice house or luxury apartment in the coolest or most convenient neighborhood. A high-end car. Frequent nights out in restaurants and bars. Expensive bottles of wine. $14 craft cocktails. Whatever. The reasons don’t matter. I don’t know your perspective. I can only try to take it.

However, amid a high cost of living, I hope you:

are a relatively high earner,
and still want to save some money to build a safety net for today and nest eggs for the future.

It would suck if you’re living (way) beyond your means. Because this is a recipe for financial impotency, if not destruction.

In this article, I detail basic tricks you can use to save money even when you spend, some might say, excessively.

Round Up ALL of Your Purchases

I do this across more than half of my monthly outlays and I maintain a comparatively low cost of living. The strategy might be essential for big spenders who also want to save.

Your Audi payment is $643.50 a month. You have a choice to make here. When that car payment goes from your bank account to the finance company, you can divert $6.50 to your savings or investment account. This is rounding up. However, you could direct $56.50. Also rounding up.

Apartment rent — $2,612. Here again, are you going to save $8, $38, or $82?

You have an amazing steak dinner with your person and finish off a $160 bottle of wine. Exquisite. Total tab with tip: $540. Will you sock away $10 or $60?

Anybody can do this, but if you have tons of money going out each month, you might need to execute this strategy a bit harder and more methodically than most.

Maybe you’ll round to nearest ten or fifty on a handful of expenditures. To the next hundred or even thousand on others. To each their own. However you decide to do it, it adds up. It matters.

Pay Yourself First

I’m on record as being against pay yourself first. But I only oppose it within the context of an insanely low cost of living.

With ultra low expenses, you’ll presumably have ample cash left over at the end of the month to save and invest. Psychologically, it works better for me to meet my obligations and pay myself last.

If you spend a lot of money, it absolutely makes good practical sense to set aside a percentage of your income and automatically save it prior to paying your bills and making discretionary purchases. You’ll eliminate the possibility that the end of the month comes and there’s no money left to save.

Combine rounding up with paying yourself first — preferably alongside moderate to high income — and you’re probably going to be in excellent shape even if you have a penchant for spending.

Don’t Take on Debt

Other than the mortgage and Audi payment (insert smiley face here!), eschew debt. This is more psycho-emotional than pragmatic.

I used to live beyond my means. I spent all of my money each month on stuff. On nice things and ephemeral “experiences,” such as dinners and hotel stays.

My mind played a cruel trick on me.

I started to think I was not only entitled to this lifestyle, but that I had some obligation to myself and a few of those around me to maintain it. So when I didn’t have the money to do something, I put it on a credit card. This is where the vicious cycle takes hold. You get swept up in it without even noticing.

This said, if you refuse to accumulate debt, you might be able to pull off high spending alongside significant saving, particularly if you make a lot money.

If you take home $10,000 a month and spend $8,000 of it, you could be saving $2,000. That’s not bad. It’s more than countless numbers of people save on the regular.

While I don’t advocate this type of budget, I’d do myself and my writing a disservice if I didn’t consider and honestly acknowledge that it can work, even if it’s not how I choose to proceed.

I dislike dogma. Personal finance and self-help gurus who claim to tell it like it is. It’s their condescending way or the shame-ridden highway. This approach serves nobody and nothing, except for the needy ego of the self-proclaimed expert.

I don’t care what you do. I care about you. I hope you feel the same way about me.

As long as you’re not hurting anyone (though, some argue we all are by participating in our money-centric economy), it doesn’t matter how you survive, thrive, and attain a state of contentedness or, maybe even, happiness.

I’ll simply be thrilled to see you get there. All the better if you’ve read one of my articles along the way.

This article is for informational purposes only, it should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.