Yesterday you saw how you could easily get 1200 back. Are you ready to see if you can get back 1000+ today?
Where do you think most people’s money gets spent on? If you guessed housing, you’re right! In fact, the average American spend 37% of their income on housing alone (unfortunately, no stats were found for the average Malaysian)
That’s a lot of money that could go somewhere else. To give you an example, when I was making 4000 (before tax), my rent was 500 and after paying for utilities, I was at 650. That’s 16.25% of my income. If I were to have been like the average American, I would have spent 1,480. But because I have more important things that I want to do with my money, I end up saving 830 each month (1,480 – 650), or almost RM 10,000 a year.
And if you lived away from home during uni, you probably know how low rent can be if you are willing to share. I was living with 2 other people during that time and the condo was probably 20-30 years old. However, I only really went home to go to sleep so I didn’t need some fancy pool, or some big living room.
And now, I’m living in a condo that was finished less than 5 years ago. Even though I can afford to live by myself, I chose not to because it would be such a waste of money. Instead, I’m living with one other person and I’m paying around 900 including utilities. The place is also right on the LRT line which takes me straight to work everyday.
So if your housing expense is more than 25% of your monthly income, maybe you should consider finding a few more friends to live with or to consider moving further away (but stick to a place that makes getting to work relatively easy). Not only will you save 1000+ a year, but you will also continue to make some great memories with your roommates!
And if you’re able to save 10,000+ like what I was able to do, then you just bought yourself a round trip vacation to Europe!
Tomorrow we look at another way to get back another few thousand (or 20,000+).
- Is where you live one of your 3 important things?
- If not, do you think you could reduce your rent expense by moving in with a friend or two? Write down how much you could save and how that money could help bring you closer to one of those 3 important things
- If where you live is one of them, then let’s look at reducing other expenses so you can upgrade where you’re currently living.
- Share your thoughts with the Facebook group