How I saved $130,000 in less than three years with under average salary
I consistently save 75% of my income year after year.
And, I have accumulated more than $130,000 on less than average income in three years.
How did I do it?
How does using my budget planner achieve constantly 75% saving of income every year.
In my free budget planner, I have listed almost all possible expenses. This tells you about your expenses, so that you know (really know know) your expenses - what are they, how much are they, and when are they due.
Once I knew all of my expenses (what are they & how much are they & when are they due), I knew what are necessary expenses and unnecessary expenses.
Then, I was able to eliminate all of my unnecessary expenses, and to reduce my necessary expense to its core.
This makes my financial to be lean.
What is a necessary expense and what is an unnecessary expense?
I asked myself, what is a necessary expense? What makes it necessary?
To answer the question, I must dig deeper into my soul than I initially thought.
I asked myself, what kind of life do I want? Why do I want to save money? What is my burning desire from saving my money? What am I willing to sacrifice for my burning desire to be realized - to be actualized?
And what do I need to keep on progressing in life - that cannot be sacrificed?
And finally, what are the necessary expenses (that must incur) to support the life that I want (and also the future life that I want to grow into)?
Picture it. Visualize your life and put as much detail as possible. Practise this and you will achieve your visualized burning desire.
I dug deep (soul searching) and I answered those questions. I also visualized my life to small details - how exactly my life is going to be doing all these changes. This step cannot be ignored. This step was the reason I stuck to my budget.
In answering what are my necessary expenses?
I decided, in order to achieve financial freedom, I must save as much as I can (within reason).
Therefore, my expense will only be:
- healthy food (without snacks - lollies, chocolate or chips),
- shelter (costs to put roof over my head),
- expenses that must incur to obtain income and
- sanity costs (some people do a little shopping, drinking, exercising, etc).
My only expenses - my only necessary expenses:
Handy tip: Asian greens ($1 for 2-3 serves) were my lifesavers.
Expenses to obtain income:
An example of my budget
This is real - I stuck to this budget for three years. And at the end of the three years, I accumulated $130,000, on a below average salary income.
Expenses to obtain income
Private Health Insurance
I don’t spend any money on any other expenses. I only spend money on my necessary expenses, shown in the table above.
Those necessary expenses are reduced to its core. I have a very lean budget, I maximized all savings I can do.
Stick to your budget
This is difficult. But I stuck to my budget, with intense discipline and something else (Click here to find out on how to stick to your budget).
And, at the end of one year, after I realized on the amount of money that I actually I accumulated, it was an enormous sense of pride that I have with myself. I was extremely happy - I was elated.
I could buy a house, an investment house, which is something that will grow in value in leaps and bounds in the future (and something that can sustain itself - through smart rental incomes).
So in summary, how did I save 75% of my income using my budget planner?
In my free budget planner, I have listed almost all common expenses.
The purpose is just to know your expenses - what are they & how much are they & when are they due
Necessary expenses are the expenses that must incur to support the life that I want (and also the future life that I want to grow into).
And for me, I decided, in order to achieve financial freedom, I must save as much as I can (within reason).
Therefore, my expense will only be healthy food, shelter, expenses that must incur to obtain income and sanity costs.
Just eliminate all of them. Live financially lean. I stopped cold turkey. And it works.
I’m a great believer in luck,
and I find the harder I work the more I have of it.
Without continual growth and progress, such words as improvement, achievement, and success have no meaning.
A journey of a thousand miles must begin with a single step.
The future belongs to those who believe in the beauty of their dreams.
Just do it.
Take a day at a time.
If it’s too hard, an hour at a time… a half hour at a time.
The snowball effect of feeling good (even if it is a half hour achievement) will propel you to continuously save.
But just do it.
©™ Kaizen Money Smartt
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