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This Woman Shows How To Save A Huge Sum Of Money By Cutting Unnecessary Things In Life

This Woman Shows How To Save A Huge Sum Of Money By Cutting Unnecessary Things In Life

Do you often complain about your wages seeming to disappear as soon as they enter your bank account? For many of us, living from month to month in terms of spending is a common occurrence. But have you ever wondered how much you could save if you really budgeted? Michelle McGagh did just that and managed to save up a massive $23,000 in a year by forgoing luxury items and sticking to the necessities. Don’t think it’s possible? Think again!

The Story Behind The Experiment

Michelle McGagh came across as an irony – she was a personal finance journalist for 10 years who wrote about how people could spend their money better, yet she wasn’t doing it herself.

She found she was caught up in the common belief that spending more would make her happier, and she believed that buying the latest products would enhance her life in countless ways.

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So, the idea was born to spend a whole year only buying necessities – no fancy dinners out, no getting the bus on a rainy or windy day, no excessive beauty products or holidays away.

Instead, she stuck to cycling or walking to work, cooking cheap homemade meals, wearing only the clothes she already had in her wardrobe and only buying necessary items such as toothpaste, soap and shampoo. It was time for a massive change. It seemed an uncomfortable prospect at first, but changing her habits and mindset towards money was key in carrying out this experiment successfully. And so, the journey began.

What She Learnt From Living Thrifty

By carefully cutting out daily coffees from the local café and making her own brew, cancelling her gym membership and exercising at home instead, and swapping expensive concerts for free gigs and exhibitions, Michelle learnt a new way of life. As she explains it:

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“I won’t pretend it was easy, though, especially the first months when I tried living my old life but with no money. Sometimes, I had an urge to forget all about it and lose myself in a shopping spree, get drunk in a bar, or just buy a bus ticket instead of climbing onto my bike again on a windy day. However, I understood something important: you don’t have to open your wallet every time you want to have a good time.”

While saving money was her ultimate goal, the most important lesson she learnt was the fact that spending money didn’t always equal happiness.

A Difficult But Rewarding Journey

Of course, it wasn’t all easy. Cutting out all her splurges and pampering expenditures was hard, and after a year, her clothes were starting to wear out, her hair was in desperate need of a hairdresser and she missed her takeout food and coffee dates with friends.

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However, she describes how she’s learnt to efficiently budget food and find the best bargains and even how to cook – skills she never would have gained had she not gone ahead with the experiment.

The biggest bonus of all? She managed to save a whopping $23,000 that went towards her mortgage, which she had been convinced she would need to spend the next 25 years paying for.

“The most important result of the year for me was that I became more open for adventure and new people. I learned to say “yes” to all things new. And I also realised how little I need to be happy.”

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So, if your bank balance isn’t looking how you’d like it to, think about what you really spend your money on. What could you cut out? Weed out the necessities from the luxuries and see how much money you can ultimately save. It might just change your life in more ways than one.

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Jenny Marchal

A passionate writer who loves sharing about positive psychology.

Success In Reaching Goals Is Determined By Mindset How To Celebrate Small Wins To Achieve Big Goals How To Overcome Self Imposed Limitations For Goal Setting To Reach Your Goals, Start With Planning For The Worst Why Setting Intrinsic Goals Can Make You Happier

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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