I discussed the prospect of how saving money increase the economy, now we’re unsure how much demand is going to pick up once things normalize, should business reopen and there is no money to be spent then yes, that can be detrimental to the economy and that’s certainly something to keep in mind, but before I go to the details about what this means for you and me, and what this means fie the future of the market, I do think it’s always important, no matter what to pay close attention to your spending during the good times and especially lay close attention to your spending during the bad times, so that way if something does happen you’re always going to have enough to fall back on, and have enough money left over to reinvest when the markers are low and that takes a lot of the stress away from worrying about your day to day finances just by going and practicing this very few simple tips.
The first is to always no matter what track your expenses to me, this us really like the glue that holds everything together because without knowing how much money you’re spending you’ll have no idea how much money you could save. Treat this as almost you’re directly to lose weight, you won’t able to burn calories except you pay close attention to how much you eat, and track your exercises and saving money is pretty much the same way, and doing this is really simple, I use websites like mint.cok and personal to track how much money you make and hoe much money you spend and where you send it.
You’ll be able to go and see graphs about where you spend your money, hoe much money you spend in each category and you’re going to be able to track your progress Going. this is so impactful that if you can just do thus for 2 months, then I promise you’re going to be so surprised at how much money you waste without even thinking about it on things that make absolutely no difference in your life whatsoever. So by going and tracking your spending you’re going to be able to pin point all of those inefficiency, cut back as needed and then apply that Mindy towards where it’s way more valuable.
The second is to find ways to get the same experience for less money, like for instead of going and buying books you’re only going to read once, you can stream them however, you’re like an audible and listening to an audio book is the perfect way to multi task by taking a walk doing the dishes, working out or pretty much anything.
As we have turned to a really strange time of not going outside, stepping indoors and not going about our normal lives, so what you’re still looking for ways to be educated and entertained and audio books are the perfect way to do that.
The Third way to save a lot of money is to go and negotiate your recurring expenses, a lot of people don’t realize this but pretty much everything out there can be negotiated and because if that they’re missing out on a whole bunch of savings.
For instance if your list is coming due and your comparable with that are trending for free, then fell free to ask for a small reduction of rent if you’re a good Trent and you can prove that the value of your unit has gone down while you’re being living there then by all means it’s worth a shot.
You can also consider shopping around your car and home insurance rates which drops substantially during the last few months and considering that cutting back on some of the expenses that you don’t nerd or use anymore.
Like seriously take a look through all of your recurring charges and you should know by now If you’be followed through and tracked your expenses and then find ways to cut down on those spending or cut them out all together. A nearly guaranteed if you so this, you should be able to finance your savings rate by an extra 10% if not way more for really just a few hours of work, so its totally worth it.
Now the fourth is a cool trick I’ve used to save money is to think to yourself, how many hours, I have to work to pay for this? Now when I first started getting really serious about saving money I never saw things in terns of how many dollars it was but instead how many hours of my time was that worth.
Like if you’re making 15% an hour and you go and buy a pair of shoes for $200 are those pair of shoes really worth 13 hours of your time. Like you’re pretty much traded an entire day of your life for a pair of shoes. When it comes down to it, we all have a limited amount of time on your planet and its so important that we all make the best use of that time and only from a financial standpoint but also in terms of personal fulfilment.
So it’s vital we spend money on the things that are most important to us and since our time is such a limited resources, we shouldn’t be spending our time and our money on the things that don’t bring us long term value. Thus us also such a good practice of the book: your money or your life. And following this is going to save you more money in way you’ve never thought imaginable.
Now the best one is anytime you save money just by this experiment, automatically transfer that savings into a separate saving or investment account, my biggest difficulty but to then later spend that money. So by immediately transfer that money into somewhere else you’re going to immediately be seeing the benefits of saving money and cutting back on the out of sight, out of mind.
Not to mention that knee I begin to see the work first hand, you’re going to be so excited that the aspect of saving money that you’re going to be likely keep this up longer term, but with all of that said, it brings us to an interesting perspective. If we’re seeing all if more Americans, save money as mentioned in all of these articles, what’s going to happen to the economy and its that actually sure enough to drop the market.
In the short term, it’s actually do believe it can have a negative effect and that’s what’s known as the paradox of thrift, this us the economic theory that suggest that if people cut back on these spending then demand for products and services would cut down alongside with it and because of that business would hire fewer people and because of that the freak saving rate would drop because one person savings is another person’s spending that’s why it’s called the paradox of thrift because, the more money us saved, the less money can be saved.
That’s why articles like to point out Hugh saving as a weakness to the economy , over the amount of spending and saving is a directly correlated to the consumer confidence that if they by something they’re going to be making enough to go and pay for it and when that confidence gets away people are going to save more money because they’re unsure jf they’re able to make more money.
However this is a really unique line because, people are inside and forced not spend money.

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