By: Krystle Crossman
Living a rich life doesn’t always mean that you need to scrape and sacrifice every day in order to gain financial freedom. There are splurges that you are allowed to have. Indulge once in a while. Just make sure that when you do splurge you can keep track of it so that you don’t overdo things. Nicole Lapin is a money expert and she has a few tips to help you to live a rich life while still enjoying it!
1. Keep track of spending – While you don’t need to pinch all of your pennies you should make sure you know where they are going. Keep a small notebook with you and note down all of the small purchases that you make. Enter in coffee, food, tolls, and all of the other little things that you wouldn’t necessarily keep in your budget so that you know how much you are spending outside of bills and can see where you may need to cut back.
2. Don’t feel bad for indulging – Lapin uses the example of buying a coffee from a barista in the morning before work. There are many who may tell you that it’s cheaper to brew your own at home and that you will save so much money. In reality, all of the time that you waste trying to make a pot of coffee at home and the amount of coffee that you may not drink before leaving the house could add up to quite a bit. If you deprive yourself of that coffee that you love so much in the morning you may not be as apt to perform at 100% at work or have the energy to do what you should be doing. So go ahead and keep your coffee habit!
3. Set your goals – If you don’t have goals you have nothing to save for in the future. Write down three separate lists of goals. You should have one for your family, one for fun, and one for work. Break them down into different time periods so that you have a few different goals to meet. For example if you are making a goal chart for work you can set a goal for a raise within a year, a promotion within five years, and a high-ranking position in the company within ten years. Start out with smaller goals to work on but continue to look at the big picture while you are achieving the smaller ones.
4. Cut costs where you can – While you do not need to save every extra penny it is still a good practice to save where you can. For example, negotiate new terms with your cable or your cell phone bill. You are probably paying too much and can find much lower rates if you are willing to work for them. When buying things like new furniture or a new car make sure that you are armed with the knowledge of how to negotiate the best price that you can. Getting a car payment that is $20 per month lower may not seem like much at first but it adds up in the end.
5. Get rid of credit cards that have high balances – If you find that you have a credit card that has a high balance, work on paying that off. Give yourself a timeline, work out a monthly payment, and stick to it. Lapin stated that she had a card that had a $5,000 balance on it so she set up a two year payoff plan and had $208 come out of her account every month automatically. She stated that she didn’t miss the money because she never saw it and she had the added bonus of having her card paid off.
6. Get the raise you want – You can’t just sit around and wait for a raise to come. You need to ask for it and be assertive about it. Make a plan and rehearse what you are going to say when you walk into your boss’s office. Be confident and have a list of all of the assets that you bring to the company that show that you deserve that raise.