70% of Money is Blown on These 3 Things

We all want to be better with our money, but let’s face it, saving money is hard. But if you are committed to making changes, you can save more. According to self-made millionaire Grant Sabatier, founder of the blog Millennial Money, most people blow their money on housing, transportation and food.

This may sound reasonable since those things are necessary for survival. However, the average person could probably spend less on them. And if you spend less and bank that money for retirement, you’ll be better off when retirement time comes.

You’ll likely have to get creative, but things like moving to a smaller dwelling, walking to work, and cooking at home vs. eating out, could realistically up your savings rate significantly. Here are a few guidelines:

• Housing – spend 30% or less of your pretax income
• Transportation – buy your car by paying cash up front or plan to pay off the auto loan in no more than three – four years
• Food – cut back on “miscellaneous” grocery expenses such as premade meals, snacks, condiments and vitamins

Read the full article on Time.com.

Credit to:
Time.com/Money
Most People Blow 70% of Their Money on 3 Things — and Cutting Back Could Be the Key to Retiring Much Earlier
By Lauren Lyons Cole, Business Insider, Aug 31, 2017