Life Hacks

Here Is How To Lower Your Cost Of Living And Build Wealth

Food, rent, utility bills and cost of transportation are the significant expense items in the budget of almost everyone. They rank top of the unavoidable expenses, eating a chunk of incomes. With inflation on the rise and employers paying lower salaries, there is no incentive to save or invest.

Nonetheless, is it possible to achieve lower cost of living and build wealth? Absolutely Yes. The formula is simple; spend less money than you make. Below are 6 ways that can help you lower cost of living and build wealth.

Make a Budget

If you want to improve your living standard and invest more, then you have to get serious with personal budgeting. Budget is simply an outline of how you make money and how you spend it. It shows how much comes in and how much goes out.

The importance of personal budgeting is that, it helps you identify and eliminate overwhelming expenses such as subscription at the gym that you don’t even attend, cost of eating out or buying items you don’t need immediately.

Knowing how much money you make and how much you spend over a period of time would help you lower cost of living, save more and plan your investments.

Converse Utility, Save Money

This may sound like trying to save the planet but you are intend saving you. Anytime you are purchasing energy consuming appliances, make time to read and understand the power rates on the items or in the manual.

It won’t hurt to ask for explanation to an ‘Average Utility rate of $3/KWh per week or an estimated yearly operating cost of $2300/KWh’ stack on the appliance in the showroom. However, it would certainly hurt your monthly income not to know this.

Also, you should also turn off light bulbs, sockets and appliances when they are not in use and be responsible with the usage of gas and water. This should help you cut down utility bills.

Consider a side gig

Making extra money aside your regular job is a great way to help offset your cost of living. These days, you can easily make money on the internet. You can offer guitar or piano lessons, blog about a hobby or skill, trade cryptocurrencies, complete online surveys, earn money from watching movies and so on.

Websites like Fiverr also offers opportunity to earn over $1000 per month through freelance writing gigs, proofreading and editing, graphic designing, web and App development for clients. Click Fiverr to sign up and earn money at your own pace.

Cook at home

It is fun to eat and drink out often with friends. But until you put pen to paper, you wouldn’t realise how costly it is to always eat out. Yes, it is just $25 for 2 pieces of spicy and crimpy chicken. I know.

I also know that the full frozen chicken sells for $20. How about the $5 for your piggy bank? To lower your cost of living, you must make a grocery list and prepare a healthier food at home. Try to always preserve leftovers.

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