Spend less save more is one of the basic concept we should have in order to survive. It’s most definitely a must if you’re hoping to become a millionaire. I suppose most of us practice the concept of spend less save more, but not everybody are doing a good job. Here’s a post title “First Person: How We’re Spending Less, Saving More” from Yahoo Finance which presented an example that everybody can follow. It might not be the best example but it definitely works.
Before I list out the areas which the family focuses on reducing spending and increasing saving, there is one important point I like to share. The family starts by breaking down spending into “wants” and “needs”. “Wants” is define as things you would like to have but does not require to survive. “Needs” is define as things you must have to survive and keeps on living. Once you’ve identified the spending, it’s easier to decide which expenditure to cut or reduce.
Below are the areas which the family’s budget is measuring up:
- Grocery cut by 40% from 2009
- Apparel costs cut by 75%
- Beauty Care dropped by 90%
- Travel costs
- Vacation cost
- Credit cards, medical bills, and credit line payments
- Entertainment and dining out
- Household repairs
- Home decor & landscaping needs
- Emergency savings fund
Although the above is just an example of a household way of spend less and save more, we can still learn the method and apply into our business. Especially when you’re trying to become a successful entrepreneurs or a fulltime blogger, it is very important to learn to spend less and save more. If you’re pursuing money making opportunities as a blogger, you need to include laptop, internet connection, blog domain and hosting company as the things that you “need”. Plus you have to consider how much investment you need to put in. Before you actually make money online, you need to budget the expenses carefully.