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10 Amazing Things You Gain By Spending Less

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10 Amazing Things You Gain By Spending Less

Our lives are consumed by constant sense of worth through material items. Do you have the latest TV technology? Do you drive a brand new car?

We are led by our money. We feel that we need money, to buy these material items, in the hope that it will lead us to happiness. I can tell you now, you are wrong. You don’t need money to be happy and spending less will actually relieve you from the stress. Here are 10 amazing things you will gain from spending less.

1. You’ll have a reduced-stress retirement 

Are you in your work pension? Do you ever worry what you are paying in won’t be enough? Do you worry your current spendings will mean a low-budget retirement? But spending less will ease that stress. Remember retirement is about taking it easy, not about appearing wealthy. You have done your years of working hard and saving (for that TV, that car, that house). Now is the time to unwind and to spend time with family and friends. Your stressful days are done.

2. You’ll be free to do what you love

Do you ever feel that there is not enough time for your hobbies? I know I do. I keep thinking, “Oh, I’ll take some photos on my DSLR tonight.” Tonight comes and I become busy working out my finances and worrying about what I need to buy. Next thing I know, it’s nearly bed time and all I want to do is watch TV.

Freeing yourself from money worries will open the door to new possibilities. Stop spending your time thinking of things that you need. You don’t need new surround sound, or to replace those salt and pepper mills (because they don’t match the rest of the kitchen). Free yourself from those worries and spend the time doing the things you love. Say, “No, I have finished work for the day, now it is me time”. Spend that time on whatever you love, whether it is painting or reading a book. Whatever it may be, the options are in your hands.

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3. You’ll be free to prepare for emergencies

Disaster strikes and with it your bank balance drops drastically. And those car repairs or vet bills cannot wait for a more convenient time. As a result your overdraft, credit card and future bills are left in a confusing and catastrophic state.
Spending less means that you have the opportunity to put away savings. That way, when disaster strikes, you won’t be left penniless. You feel at ease knowing that you have those savings set aside should you need it.

4. You’ll have less clutter

Do you ever look around your room and think, why did I buy that? Or perhaps you have glanced at the endless items you have in storage and wondered why you bought it.

If you are spending less, that clutter won’t accumulate. Imagine the relief from having only items you need, not a mountain of junk. This can be very stress reliving as you will have less time needed for de-cluttering.

5. You’ll be free of debt

The credit card statement has come through. The amount of debt is frightening and you wonder how you will pay it back.

Wouldn’t you feel better if there were no debts to worry about? Of course you would. Freeing yourself from constant spending will make it easy to become debt free. Focus less on the ‘wants’ in life, which snatch away your money. Choose to cease spending and use your money on things you need.

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By becoming debt free, you will take the pressure of yourself. You won’t be frequently worrying about how you are going to pay it back. Another benefit of this is your credit score will not be affected.

6. You’ll be free to travel and see the world

Your mind is wandering again at work. You imagine how blissful it would be to be free to travel, to see the world. If only that was reality. But it could be with the correct approach.

Spending less opens you up to new opportunities, including travelling. If you can learn to spend less, you are more than capable of exploring the world. Not only will you have the money set aside (see point 3), but you will have the right attitude for travelling. Travelling is about exploring other cultures, with food and shelter being the only necessity. You will find yourself experiencing different lifestyles, not wasting time on going shopping. Remember, you should spend money on experiences, not on material items.

7. You’ll have happier relationships

Ever had a row with your partner because he spent money on the credit card? And the argument just seems to keep going, spiralling out of control, until you have forgotten what you were arguing about.

Money puts a strain on our relationships. We shouldn’t let it affect our relationships, yet it does. We all fear being financially unstable and not being able to afford things. Unfortunately we tend to vent out of worries and frustrations on our un-expecting partners. However, if you are spending less, making you financial stable, there will be less strain on your relationship. You can’t argue if you aren’t constantly spending. This results in happier relationships.

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8. You’ll learn new skills

Do you feel like you never have the time to learn a new skill? Have you always been meaning to learn a new language, but never got around to it?

Spending less money will free up your time. Just think about how much time you spend on useless money spending; searching online for a new wardrobe, finding the latest gaming gadgets, bargain hunting, the list goes on. With all this free time on your hands, you can finally learn that new skill. You can learn a new language or learn DIY tricks, whatever tickles your fancy.

9. You’ll be healthier

Finances restrict us. They take up our time, our energy and resources. You may feel that you don’t have time to work out, or you’re so stressed you need to pig out. As a result, your health takes a hit.

Spending less will greatly boost your health. It will take away your stress as you are no longer fretting over finances. That spare time you have gained will allow you to work out. You will have your full attention on your eating habits and be less likely to stress eat.

10. You’ll enjoy life

Our day-to-day lives are fairly manic. We get caught up in life’s motions that we forget to enjoy the moment. Among these culprits is money spending. It is regularly on our to-do lists; buy milk, find Hayley a cool birthday present, buy new yoga pants.

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This is where the true beauty of spending less comes to play. Our focus on money takes away life’s joys, straining our lives and turning our focus on material items. Spending less teaches us that we don’t need these things to be happy. It allows us to look at the current moment we are in, to appreciate what we have and to experience life.

Life is too beautiful to spend it worrying about material things.

Featured photo credit: sufinawaz via freeimages.com

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Jessica Charlotte

Jessica loves sharing her tips on life. She writes about happiness and motivation on Lifehack.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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