5 Easy Tips To Stop Wasting Your Money and Improve Your Budget


It’s so common for people to think if you spend more money, you’ll be happier. You try to buy as many things as you can. You believe products and services will make you happy. Here is the trap. The more you spend the more you need to earn. This is a road to nowhere.

Instead of thinking about your next product or service to buy, think about what you really need. Analyze your life according to your needs. There are a bunch of things you don't need to feel happy and live comfortably. Your life is simpler than you think. It’s time to plan your budget in a new way.

Budgeting isn't complicated as you might think. If you plan it properly, your expenses we'll go down immediately. You don’t need to be a financial specialist.

Get a paper, because I'm going to share 5 helpful tips you can use to improve your finance right away. These tips based on my life experience and research from other people. These tips made me think about life from

a different angle.

Stop Buying Services, Subscriptions, and Products You Won’t Use

Have you checked how many transactions do you have on your card per month? Are all of them relevant to what you need? Let's try to review the simplest example Netflix – the streaming service for movies and shows.

The Westmonroe research revealed a real truth for subscription services. They conducted 2,500 Americans and analyzed their budgets. The result is surprising:

  • 84% underestimated what they spend each month
  • 10% overestimated what they spend each month
  • 6% spend exactly what they estimated

Ask yourself a question. Do you know the exact money amount you spend each month on subscriptions? If you are among the 84% category, it’s time to take your budget seriously.

If you are in the 10% category, you still need to ask yourself another question. Do you really watch Netflix each month? If you have the internet, the majority of your time will be spent on YouTube. Do you really need to pay for a Netflix subscription?

If your answer is yes, I need Netflix, then you are fine. If your answer is no, it's time to think about ending your subscription. It costs only $9 a month which is a really low price, but if you have a lot of unused subscriptions, products, and services, it might be a much better amount of money.

You need to stop paying for things you don’t use.

You don't need to be a financial expert to improve your budgeting. Just sit down and go through your credit card transactions of last month. Unused subscriptions or products don't have value for you, so stop paying for them right now.

Do You Really Need a Cup of Coffee To Start Your Day?

I often hear from my colleagues they need a cup of coffee to start a day productively. This is a use case when you really need a coffee to be productive at your job. But if you feel great and just want a cup of coffee every day, think about expenses.

Did you know that One-Third of Americans Spend More on Coffee Than on Investing? According to investing app Acorns report, 34% spend more money on coffee than on stocks or bonds.

Math calculations show if you start investing $92 a month, you get $16k — $286k at your 65. This savings gap depends on when you start investing. Obviously, the earlier you do, the bigger result you’ll get.

Now let's back to your daily coffee expenses.

The average price of a Starbucks drink in the U.S. is $2.75. New York City is the most expensive location, so coffee here costs $3.25 for a tall cappuccino. Now multiple this price into 30 days. As a result, you get a price between $82.5 to $97.5 per month.

Yes, this is the amount of money you spend on coffee each month. And this is just your monthly budget for the average price of coffee. I’m surprised. What about you? I bet you’re surprised too.

Think about profit and compare what you need: a cup of coffee every day or a great bank account for your retirement. As you can see with just $92 per month you can get a better option than a cup of coffee.

I'm not against a cup of coffee in the morning, but I don't understand people that create a daily routine from it. The coffee goal is to give you energy, but if you need pleasure only, it's really an expensive habit. This money can be used more wisely. It’s up to you to decide what you need.

I'll share a secret how you can save your coffee routine if you can't live without it. Take a sticker or cook a coffee in a thermos and take it to your job. It would be less expensive than buying a coffee out.

Track Your Expenses As They Happen

Management and Budgeting research reveals that expense control became possible by systematic planning and budgeting.

I didn’t realize how much I spend per month until I started to track my daily expenses. Once I started to track my spendings, I became strict about what I’ll buy. You’ll be surprised how much you can save when you write your expenses daily.

There are so many ways to keep yourself on track. You can write down your expenses in your notebook, use an app, etc. It's really doesn't matter how you’ll reflect your spendings. The major point is to let you know about the amount of money you spent daily.

When you see digits daily, you start to plan your budget in advance. This daily routine is a good way to create a financial habit that will lead to more productive budgeting.

It's no secret that people learn the information buy vision better than with other feelings. 65% of the population are visual learners.

So when you see digits, your brain will work in a fresh way. At the end of each month, you won't ask yourself why a few bucks left on your card. You know exactly how much you spend and where this money went to.

You Don’t Need To Pay for the Most Expensive Apartment in the World

While place, where you live, is a very important aspect of your life, it doesn’t mean you need to spend all your money on it. Of course, the apartment price depends on the location where you leave, such as state, country.

According to Numbeo, you can rent an apartment in New York City for the next price range:

  • Apartment (1 bedroom) in City Centre — 3,102.48 $
  • Apartment (1 bedroom) Outside of Centre — 2,018.66 $
  • Apartment (3 bedrooms) in City Centre — 6,455.27 $
  • Apartment (3 bedrooms) Outside of Centre — 3,417.24 $

If you want to rent an apartment in Austin, the price will be way different:

  • Apartment (1 bedroom) in City Centre — 1,805.23 $
  • Apartment (1 bedroom) Outside of Centre — 1,121.72 $
  • Apartment (3 bedrooms) in City Centre — 3,214.00 $
  • Apartment (3 bedrooms) Outside of Centre — 1,955.48 $

But you know what? The apartment price is so overrated in a modern world. There are so many features you don't need in your everyday life. For example, what's the difference between apartments with standard and luxury levels? Are you going to use all rooms in your apartment?

If it's a non-luxury apartment, does it mean that you can't sleep, eat or take a shower there? I know you want to live in a cool place like a lot of Hollywood stars. There is a huge difference between you and superstars — they can afford luxury life easily.

If you're not making million dollars and plan to spend all your money on an expensive apartment, you’ll have a hard time in the future.

Each human lives according to income. If you earn a lot of money, you can afford a very expensive life and feel good with your budgeting. But if you’re not earning million dollars, it's not wise to spend all your money on a luxury apartment.

Time Is Everything for Your Income

Did you know that people who earn a lot of money wake up early in the morning? Does it mean that “early birds” only are successful? The short answer is, no.

People who wake up early in the morning know time value. Instead of chasing other people, they plan time in advance. By planning the time, I mean effective usage of it.

Taking Time Use Seriously research identifies income effects on time use by non-workers, showing that relatively time-intensive commodities — sleep and TV-watching are inferior.

When you watch YouTube videos, Netflix, play video games, is it important to you? Yes, it's a way to relax, refresh your mind, remove stress. In most cases watching a video or playing a game is just a waste of your time.

Imagine how many things you can do instead of spending time on unnecessary things. If you watch a lot of YouTube videos, think about creating your own YouTube channel. You can get a better experience of video streaming platforms and become a YouTuber.

As you know YouTubers earn a lot of money, so it's time to think in a broader way.

To-Do Lists Are Your Best Friends

When financial experts talk about money, they mention the productivity aspect. By productivity term, I mean how you can improve your current situation by exact steps. One of the best ways to stay productive is to use a to-do list.

If you have never heard of a to-do list, this is a great way to increase the amount of money you can earn. A To-do list is the best method to stay concentrated on your gall.

The Guardian says that studies have shown that people perform better when they have written down what they need to do.

For example, you want to read a book which consists of 600 pages. It's obvious that you can't read such a book in one day. But if you divide your reading routine into 20 pages per day, you'll be able to read a book in just 1 month.

If you have a big goal, divide it into small tasks that you can do every day.

Task by task you'll be closer to your final goal every day. This is an extremely efficient way if you want to earn more money. If you need an extra thousand dollars, add a task to earn $33 every day. If you earn $33 per day during the month, at the end of the month you'll have your $1,000.

As you see, planning a task with a to-do list leads to the final goal.

If you feel uncomfortable with budgeting and financing, it doesn’t mean you need to hire an attorney. It’s better to analyze your monthly spendings and come with a solution.

My 5 tips mentioned before are easy to start implementing, even a child can use some of them. Proper budgeting is very important for your happy and wealthy life.

Structuring, planning, and analysis are your best friends for a life you deserve. Take time and refresh your financial situation to make your goal become a reality.

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