Why You Can't Afford Your Life

We all get caught up in life thinking we can't afford what we have. But the reality is we can. My wife and I started off way below poverty level and have moved up drastically in the financial portion of our lives. What we need to do is to rethink how we use our money and from there we can make it work for us.

Stop Wasting Money

Here's where you hear the stop drinking your daily starbucks.... Ok, if you still do that then stop, but most people don't drink Starbucks every day. Here are just a few of the most common things people waste money on.

Identify Wasted Money

In all of our lives we spend money on things that we shouldn't be. Before we can stop wasting money, we need to know what we are wasting money on.

Streaming Services (Netflix, Hulu, Peacock, Apple TV, etc...) Have more than one? Stop paying for multiple. Instead, choose one and watch it for a month and then use a different streaming service next month. You get all the entertainment without having to pay for not watching shows.
Gym Memberships How often do you actually go to the gym? If you are someone who is actually using this then DO NOT sacrifice your health to save a few dollars. However, if you don't go, or often don't go enough, then you need to cancel this membership. You can do a ton of workouts at your own home and save some serious money.
Alcohol / Smoking Habitual drinker / smoker? This is where you save financially and for your health. This is a ton of money. Instead, limit yourself to a budget for these categories and only enjoy on occasion. I've seen people saves massive amounts of money on this category alone.
Clothing You don't need the latest threads and you can wear your outfit more than once. Some of the richest people only own a couple of suits and then use accessories to make it look like a new suit every day. Find ways to customize your wardrobe that bring your own style and personality out without having to buy entirely new outfits.
Technology STOP upgrading your phone, watch, etc... every time a new version comes out. I know more people who have no money that have the latest and greatest yet they tell me they can't afford a $12 dinner out. Well stop buying $1,200 phones every year, that's 100 $12 dinners you missed out on this year.
Vehicles Don't ever buy a car you can't afford. These things get hit and can will face damage over time. I'm not saying buy an unsafe car, but don't be buying the top of the line car with the latest features if you can't afford it. Honestly, today's top of the line car is next years mid-line car, so it's really not worth getting the top of the line anyhow.
Restaurants If you can't afford to eat out, and tip well, then don't eat out at all. Save up your money and go to a nice restaurant once a month instead of eating a bunch of fast food. It's better for your waist and your pocket book.
Apps Soooo much money is spent on apps every day. I have probably spent less than $10 out of my own pocket on apps in my lifetime. There's almost never a need to pay for an app when you are down on money. It's best to wait til you have your money situation fixed before spending anything on an app.
Buy Now Pay Later Stay away from these! Don't extend your payment to 3 monthly payments... If you can't afford it today, don't buy it.

Recoup Money

Sometimes we make purchases for items that bring us no value or joy. Its time to get those items collected and start selling. Be careful when you are selling and make sure that it is in a public place or direct ship through a trusted site. There are a lot of scams out there and your life is worth way more than the $10 you may make on an item.

I personally don't like selling things, but I do like trading with people I know. So I often will find something I need and trade something I have to get it. Even though you may not make any money this way, you are preventing an expense by trading.

Invest Your Money

Doesn't matter how much money you have left over at the end of the month, it's time to start investing as much as you can. Once your money starts earning you money then that will help change your life. The younger you are, the more advantageous this can be because time is in your favor. How you invest your money is up to you, but anything that gives you a return higher than your savings account will make you money. Let your money work for you.

Invest In Yourself

Need more income? Find out what you want to do for a new job and then start by researching those positions. Is school required or will a certification do? Can you find someone who works for the company that you want to work for and ask them how they can get into the field. People are often willing to help as long as you are asking how you can better yourself. Asking for a handout won't be received well, but asking for directions are often received well.

If you do need to go back to school to change your career, try finding a company that would be willing to either pay for your school, or hire you to work in the field while you are working on your degree. There are companies out there that will do these things so it is worth looking for them. Whatever you do, don't take on more debt to try to get out of debt.

Invest In The Stock Market

For most people, picking individual stocks and trying to day-trade is not a profitable endeavour. I typically recommend people putting their money into a rob-advisor and letting it take care of your money for you. Sure, you may not see the epic gains that some of these people on TikTok show, but you won't be subject to their epic losses either.

Invest In Your Future, Pay Off Your Debt

Having debt is a burden that makes you lose joy in life. Knowing that you don't own your own life can be debilitating. The freedom you get from not owing anyone anything can't be matched in the financial world. Anytime you can save up some money, start paying that debt down. Don't carry credit card debt. Credit cards can be great, but they are often a gateway to debt. We live in a world of buy now pay later, don't fall victim to that way of thinking.

But What If I've Already Done All Of This And Still Can't Afford Life?

Then you have to cut your costs and increase your income. We saved almost 50% on our grocery bill by switching from Walmart / Publix to buying everything we need from Aldi / Costco. On top of that, we cut down about 20% of our grocery budget by buying monthly instead of when we need things. Yes, that's 60% less than our typical grocery bill in a month. Don't be brand name loyal, don't fall for BOGO deals. Buy what you need and what you need only. My wife is able to do a monthly shop, and then we only replenish fresh items like fruit and vegetables during the week. We eat 3 meals a day, and almost all of them are at the house. She LOVES to cook, so she cooks up several meals and has them in the freezer ready to go on days that she doesn't feel like cooking or we just don't have time. This prevents unnecessary spending at restaurants.

Sometimes in life we need help. If you need help then ask around with friends and family to see if they can help you find work that will pay more than what you are currently making. I don't recommend asking for money, but asking for help finding a new career is actually extrememly beneficial. Have them post on their social media "Friend looking for a new career" just don't have them list you publicly. You'd be amazed at how small the world is and who you know that might know the right person to help you in your career.