*FRUGAL LIVING FOR RICHNESS*
I had a work colleague/friend once. He was much senior to me and earned a good amount of money and lived fashionable. New latest mobiles every 3_4 months, designed clothes , expensive wining and dining and the works.
On the other hand there was this guy who was same position as he was but lived frugal. Good clothes and an OK mobile phone was good with him. No extravagant expenses like the first guy.
Once I was walking with the first guy in the canteen and out of the window we saw the second guy drive his new car in the company door. My friend was in disbelief and when we saw him in a few minutes he asked me how he could afford a car ?
The guy simply looked at my friend in the eye and
the reply was ” I am using the same phone from last 2 years”.
Those words have struck with me ever since.
You see living frugally is the best way to achieve your goals and dreams financially.
A person who lives frugally will never be out on the roads nor will he ever be crushed by a mountain of debt.
Satisfaction and rewarding is what one will achieve living a frugal lifestyle.
The first step towards this is to avoid spending like a fucking numbnut and reducing down the unnecessary bills and expenses.
It’s quite easy.All you need to do is get rid of the junk, the clutter.Sell or give away anything you don’t absolutely need.
Take a look at your expenses and cut down and crack a whip on useless shit
Driving around in a new top of the line car on loan just for showoff is stupidity. Sell it and get a more manageable car.
Eating out every freaking day? Buy some groceries and learn to cook food. You will put healthy stuff in your body along with saving money.
You should never be in a situation where we are having a difficult time making our
outrageous rent payments, mortgage payments, credit card payments, car payments,
That shit is like a weight on our shoulders, crushing us little by little. Get rid of all those
burdens and it feels like a huge weight has been lifted off our shoulders.
A general rule of the thumb I say everyone should follow is the following
Kindly note that this is how I calculate stuff and so far the best method to know your spending capacity.
So the following expenses must be calculated based on your income.
Mobile – max you should pay for the mobile is around 10-20% of your monthly income.
Car- Max one can spend on a car is his income of 10 months. So around 1000usd for our. That too is a bit higher
Home- Your appartment/home must cost you maximum your income of 5-6 years.
No credit cards
No freaking dumb ass credits from anyone for any reason.
Around 25-30% of your income must be invested into Stocks/mutual funds etc so that your retirement issue is solved for you.
Following the above is a very good way to calculate how much one must spend so as to not fall in the clutches of the dreaded “Loans”.
Live it frugally and see the difference.
Till next time