Due to some recent events, I have decided to tighten my belt with my finances. In a previous post, I talked about budgeting and how you can use tools to plan your financial outlook. In this post I will talk specifically about why I want to start saving more and how I might go about it. There are 3 reasons why I have now made saving a priority.
The first reason for my version of austerity has been the increasing amount of traveling that I have been doing the past couple of months. My new job has given me an opportunity to go places that I didn't dream of going a year ago and as such I have been addicted to flying to more and more exotic places. Upon a closer look at how much I spent, airfare and travel expenses have revealed that I tend to be a bit careless especially on food. I really need to start saving more and budgeting for travel expenses in order to continue to travel without worrying about money.
Second reason that I am going on thrifty diet is that I want to save for a house someday. I talked before about the rising cost of living in Silicon Valley. I would have to save almost +100k in order to pay just a down payment on a house. With housing prices in the +500k, I don't think I will be buying a house anytime soon, but I do want to plan for it. It is really depressing to think about how much I would have to save for the chance to pay a mortgage, just a chance. Inventory for houses in this area are very low. People are overpaying for the ability to get their kids in a great school district and competition for houses has been quite fierce.
Lastly, my parents are currently in the process of buying a new car and they want me to help them with a down payment. I have been using their car for many years without paying them and now that I have a job, it is time for me to give back to them. It’s not a problem except that I didn't really plan it in my finances to give my parents this money. It will be tough to allocate monthly payments to them presently.
Some of the ways that I have been think about how to go about saving is to cut all unnecessary expenses. I recently stopped a magazine subscription that I had for 3 years to save about a $100 bucks a year. I was rarely reading these magazines that are just sitting on coffee table and I would get one every week, they would pile up and be stuck in a corner somewhere, forever. I am also looking into sticking with my planned budget for eating out. I have always had my limit for food expenses but I would routinely go over that amount, I have to be more disciplined at following my own budget.
As a work around to saving more, I could also focus on earning more. The reality is that one can only save so much before there is no more money to save. I have been actively trying to find a part-time job that can provide me with some on the side. So far it has been rough going as there are a lot of jobs that either doesn’t fit the time constraints or the experience necessary.
I will update you guys on my saving progress as well as new ventures that I am planning for the future. If you have any ideas on saving and budgeting, feel free to leave me a comment below.
Save well my friends…