Friends, while there are several big stuff that we should be sweating leveraging my 80-20 model detailed in my book, I thought of taking the opportunity and touch on some of the small stuff that also adds up in the long run. Here is an inside look at some statistics (yearly) around the smaller spends that I wanted to share and get you all thinking about our spending habits:
Buying branded or designer products usually costs higher almost 20-60% more in grocery stores. Based on my experience, sticking to house brands can yield yearly savings of $2,000 – $5,000.
Instead of eating out, try to bring your lunch to the office for at least four days. With this method I saved $150-$200 per month, which yields a yearly savings of $1,500 – $2,500.
Maintain presence of mind and avoid doing multiple tasks when driving. Common mistakes cause unforeseen expenses (such as hitting your car while backing out of the garage). Also, learn basic car maintenance, such as checking oil and fluids so you know when to go and get it serviced (and not more than you need)
If it suits your lifestyle, adopt the sharing model where possible. Share an accommodation if you are a single. Share a ride to work. Take group vacations.
Keep putting in as much added principal as you can to your house mortgage and auto loan. Yearly Savings: $5,000 – $20,000
Whenever you see you are building up debt, stay on top by cutting down on all possible expenses that are not necessities.
Be loyal to some of the stores where you get things you need and if you do that do make sure to become their member so you get member deals/discounts or take advantage of loyalty programs.
Raising deductibles on various insurances helped me generate savings of up to 30%, which added up to yearly savings of $200 – $400.
Get your gas filled up at a gas station in your commute that is priced lowest. You can almost save up to $5 for each time you get the tank full. There are apps and websites to help you find the prices of all nearby gas stations. Based on my personal experience, this adds up to yearly savings of $200 – $300.
Try to keep three or four months’ salary in a separate savings account as “emergency cash.” I pretended it was not there when making spending decisions. Whenever I did tap into it (as I did for a few major expenses), I made sure to prioritize filling it back up as soon as I could.
It is the true story of a common man’s journey to becoming a millionaire after his arrival in the United States—the story of a man who started from ground up to gain financial freedom in a new land. This book is short and practical volume about living well and saving smartly.
Shiv Verma illustrates how to create a successful financial model based on simple and educated decisions. This book walks the reader through a model based loosely on the lessons Shiv’s father taught him before he passed away. Shiv explains how he modified and replicated his father’s model into something he now calls the “smart savings model” and shows how it can be recreated in a variety of environments. By maintaining the strong and adaptable system of “smart savings” and finding your own personal “commit force,” you can be on the path to achieving financial freedom sooner than you expected.
Millionomics is an easy to read book that can be finished in a single sitting. Readers of all ages, regardless of where they stand financially or what their goals are, will leave with a new perspective on how to save more money without sacrificing a high quality of life. Shiv teaches readers how to set practical goals and prepare for the unexpected events that throw life off course at times. He takes you on a year-by-year journey and uses his own life and spending as a concrete example of how he became a millionaire by simply saving. This book proves that with planning and conscious spending, wealth is not an unattainable goal!
With this book you can identify your “commit force” and start your journey today. There are no tricks or gimmicks, no magic, no shortcuts here—just an easy to follow concept and some inspiration. You will learn how to save wiser, spend more consciously, and invest smartly. Are you ready for a change?