Here Are 7 Simple Ways to Make Your Money Go Further…

By Elliot Newman

This isn’t an article about how to earn more money, or create additional income streams. This is an article about how to make your existing income go further… it’s about being SMARTER with your money.

Here are 7 ways to make your money go further:

#1: Save at Least 10% of Your Income

The smartest people I know, financially at least, all SAVE some of their income. It’s not a wise idea to spend every penny you make.

As a rule of thumb, save at least 10% of your income.

The only way to do this, in the long run, is to set up a SAVINGS account. Then, each month, when you get paid, immediately transfer 10% (or more)  of your income to your savings account.

This is good in 2 ways:

First, you build up a pot of money ‘for a rainy day’. If you lose your job. If your business falls on hard times… you have CASH. You don’t touch this cash unless it’s an EMERGENCY.

This is called ‘Financial Security’ and it stops you from having sleepless nights. I recommend having the equivalent of at least one year’s salary in a savings account, in CASH.

Second, it allows you to save up a sum of money that can be invested. For instance, you could save up enough money to put down a deposit on a second house. You then rent that house out and earn money each month from the tenant.

#2: Keep Borrowing/Debt to a Minimum

Almost everybody needs a mortgage to buy a house. So, that’s one ‘debt’ that’s pretty much a necessity if you want to one day own your own home.

I think buying cars on finance is okay too (so long as you can meet the monthly payments without causing yourself stress).

But, the way I see it – pretty much any other kind of personal borrowing/debt is foolish.

These days people buy holidays, fancy watches and Lord knows what else on credit. It makes no sense whatsoever and it’s a road to a serious financial headache!

Have a mortgage if you must.

Buy a car on finance if you must.

But, buy everything else for CASH, or don’t buy it at all!

#3: Live within Your Means

This is directly related to the previous point…

And, it’s sadly NOT the way many people are living in today’s modern society. Credit is TOO EASY is obtain, and people cannot resist borrowing money…

So they live way outside of what they can really afford… buying furniture on credit, household appliances on credit, racking up huge credit card bills with crazy interest rates…

The list goes on.

None of this behaviour is ‘living within your means’.

Listen. I know we live in a materialistic society. And, it’s nice to have nice things.

But, trust me…

It’s better to live in a slightly smaller house, drive a slightly less expensive car, and NOT have to worry about how you’re going to pay for it… than it is to constantly borrow, live beyond your means, and totally stress yourself out, simply so you can have the fanciest watch on your wrist and your wife can be dressed head-to-toe in designer clothes and shoes.

#4: Plan Your Meals Carefully

Here’s a great way to save money each month – and improve your health:

MEAL PLANNING.

A couple years ago, my fiance and I noticed we were WASTING a lot of food. We were simply buying too much food, not eating it, and throwing it away.

The solution was to plan our meals for the week.

This meant we knew exactly what to buy at the supermarket each week. It led to almost no waste. And, it reduced our food bill by about 30%.

If you eat organic like we do, and cook mostly from scratch, that 30% saving equated to about $300month.

#5: Shop Around for a Better Deal on Your Mobile Phone

It’s very easy to run up a 3 figure bill every month on your mobile phone.

However, if you shop around, you can often get all-inclusive mobile phone contracts – with unlimited calls and text – for a much lower price than many people think.

And, even if you only save, say, $25 on your phone bill a month, that’s still $300/year. Which is better in your pocket than a phone companies, right?

#6: Shop Around for a Better Deal on Your Utility Bills

Here’s an area where you could save a lot of money – on your Gas and Electricity Bills.

Shop around, see what all the providers are offering, and go with the cheapest deal. Sure, it’s a boring task, and it might take half a day.

But, it could potentially save you a 4 figure sum each year.

#7: Use a Broker for Home and Motor Insurances

Here in England, many people use price comparison sites like Money Supermarket or Go Compare, when they want insurance. And they think these sites get them the best prices.

In my experience this is total nonsense!

These days I use a broker called Stackhouse Poland for my Home Insurances (building and contents) and my car insurance.

And, not only does my guy – Ben – at the broker find me better deals than I have ever found on comparison websites… he also does all the hard work for me.

I give him the property details (or car details), and he comes back with the quotes.

Simple as that.

So there you have it…

7 daily finance tips that’ll help you make your money go further. Leave your comments/questions below, and I’ll talk to you soon…

Your friend,

Elliot Newman