I’ve written extensively about how your 30s are way better than your 20s, and one of the main reasons that that is true for me is simple–I have a lot more money now. This is largely due to the fact that I chose education as my first career path and well, just about every other field is way more lucrative. Money, of course, isn’t everything, but it is nice to not feel tapped out at the end of every month.
One thing that is painfully tempting when we earn higher incomes is to raise our lifestyles. I’ve been there. We’ve all been there. When I was teaching, I remember there were a few months a year in which there were three paychecks. Did I save that third paycheck? Nope! I usually blew it on something stupid.
I’m not proud to admit this.
Today’s topic discusses living below your means, and honestly, my years as a broke teacher largely contribute to my being able to do this. Note that this is coming from a woman who certainly enjoys the finer things in life, but also does intentionally live below her means. It’s a struggle, but I know you can do it. Enjoy!
Explore the world of secondhand shopping.
Trust me when I say, I was the biggest skeptic when it comes to this. When I was a broke teacher, did I love the idea of thrifting? Heck no! However, I came to realize that if I wanted to have nice, designer things, I’d have to bite the bullet and try it. And guess what? I still love it. I wrote a whole post about the Junior League Tossed and Found which is coming up in March, which is really where I had my first exposure to thrifting. Honestly, some of my closet staples are from the T&F. Get over yourself and try it.
Send your savings in to over drive.
OK, now that you’re sitting pretty salary-wise, it’s imperative to make up for any retirement savings you might have missed out on when you weren’t doing as well financially. Say it with me: MAX OUT YOUR ROTH IRA. For most of us, that maximum is $6,000 a year and it’s such a no-brainer to take advantage of because not only is the money you contribute not taxable when you make withdraws in your retirement years, but whatever it earns isn’t taxable either. It’s also super important to max out now because once you’re making more than $150K/year, you won’t be able to contribute to it anymore.
In addition to the Roth IRA, make sure you’re contributing to your Money Market, 401k, whatever. Obviously, talk to your financial planner about this, but it’s likely you (like me) have some time to make up for.
Meal plan and cook at home as often as you can.
Obviously, this is a no-brainer. Eating out is EXPENSIVE compared to eating at home. I’ve written about my meal planning before, but in order to do this well, you HAVE to think ahead. When you absolutely need to eat out, opt for healthier, inexpensive options like Chipotle (be careful what you order, though!), Cava, Roti or Zoe’s Kitchen.
Carpool
In order to write this post, I took a look at my bank statement to help me come up with ideas and geez–one of my biggest expenses is gas and that’s SO annoying because you have nothing really to show for it. One way to save money on this (obviously) is to carpool. I’ll be honest with you, though, I love my me time in the car, so this is one area that, while annoying, I’m going to continue to be extravagant about.
Check in on your automated expenses
Wowsa, there are so many little creepy expenses that can make their way on to your credit card. Every month, take inventory of all the automated expenses and cut what you can. When I did this a few weeks ago, I realized I’d been paying for a subscription service that I accessed precisely zero times. Ridiculous. Cut that ish out yesterday. Which brings me to my next point…
Consider not always using a credit card.
Even though I’m a loyal fan of Dave Ramsey and am so thankful for his wisdom, this is one area I differ from him opinion-wise. If you are the type of person who’s well-disciplined and can pay it in full every month without going off your saving track, go ahead and use a card. There are many that have fantastic points opportunities (THIS is my favorite and the 75,000 mile bonus right now is insaaane). However, if, even with your money, you find yourself cutting it close at the end of the month, maybe it’s time to switch out your credit card for a debit card.
Remember that you can splurge, just not all the time.
I was at brunch with a friend back in the fall, and we were talking about how boojie we felt. The brunch was extravagant, and we loved every single second of it. Times like this are crucial and so much fun. But, if it’s not a once-in-a-while thing, it stops being fun. It’s all about balance. You can appreciate the finer things in life, but remember to keep it all in perspective and strike a balance.