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There is often a huge difference between being wealthy and just having a high income. To avoid the bankruptcy attorneys with a high income, you’ll need to do things a little differently than normal people. Normal means debt. And nearly half of the people earning over six figures a year have less $1000 in savings. Scary, isn’t it? Unfortunately, a lot of people fall prey to looking wealthy as opposed to actually being wealthy. Today, we’re going to talk about 3 simple ways you can sidestep consumerism and finish rich.
Ask yourself this one question. Are you caught in the consumerist trap of purchasing high-end stuff just to impress people who don’t really care about you? If the answer is yes, you need to reevaluate what matters most in your life and make changes accordingly. If you’re able to tweak these 3 major areas, you’ll be guaranteed to impress the only person that counts – yourself. And with that, let’s take a look at 3 simple ways you can send your savings into the stratosphere.
1. Buy A Smaller House Than You Can Afford
It’s tempting to buy the biggest flashiest house you can afford, but just because a bank will lend you 400k doesn’t mean you have to spend 400k.
Your financial situation will greatly improve if you simply go for a property that is big enough to meet your needs without being excessive.
When it comes to purchasing a home, the less you borrow, the quicker you can pay back your loan and the more time you have to save for early retirement and invest.
Remember, your mortgage is probably (and hopefully) going to be your biggest monthly expense. Paying it off as soon as possible means you’ll likely save tens of thousands of dollars in interest alone. And when you free of that kind of cash you can be staring down an early retirement before you know it.
2. Don’t Buy A New Car
“But how will everyone know that I’m important and earn a lot?” you ask. They won’t, but you will, and your bank balance will be a lot happier for it.
Let’s talk depreciation for a moment. According to Carfax, the minute you drive your brand new car off the dealer’s lot, you instantly lose about 10% of its value. After a year, you’ll lose another 10%, and after five years, the average car has lost around 60% of its original value. And, certain high-end vehicles can take an even steeper depreciation tumble.
By choosing a car that is around five years old, you’ll still have something fairly modern, but at half the cost of the list price. When you consider the amount of money you’ll save up front and over the course of ownership, buying a pre-owned vehicle makes gobs of sense for anyone’s bottom line.
Other articles you might enjoy:
- Cars Drool And Cash Rules
- Old Cars vs New Cars: Are Older Cars Really Cheaper?
- Tiny House Living: 7 Things You Need To Consider Today
- Why We Refuse To Buy A Bigger House For Occasional Guests
- Buying A House? Due Diligence And Gut Instincts Matter
- 5 Ways You Can Combat Consumerism In 2018
3. Question Every Purchase
In today’s consumerist society it’s easy to get caught up in the hype and buy stuff you don’t need just because it’s part of the barrage of advertising that inundates your daily life.
But, before you part with any money, no matter how small, ask yourself: Do I want this, or do I need this? If you only want it, wait a day or two. The majority of the time you’ll find that you didn’t think about it again after walking away.
It may have only been a small purchase. But lots of small purchases can add up to a large amount of money. You’ll be surprised how much you save just by questioning whether the thing you’re about to buy is a ‘want’ or a ‘need’.
Hopefully, these strategies have given you a little food for thought on how to send your savings into the stratosphere, regardless how much money you earn.