The word 'Saving' to me is NOT about not-spending. If I tell you to just cut cost and not spend, trust me, you won't last long. You won't be saving for long period of time and also you won't lead a happy life. Remember, we are doing all this to enrich and live more meaningful and fruitful lives. What is the point in working if you can't enjoy the fruits of your labour. Therefore, we have to be honest with ourselves.
'I am going to spend, but only on things I truly love, things that would truly ENRICH my life'.
If that daily cup of starbucks really makes a huge impact on your day, go for it! But do cut down spending on some other aspect of your daily life to budget for it. If that netflix subscription improves your family time with your kids with a weekly movie night, go for it! If that expensive luxurious car can really enrich your own life as you have a long commute that needs to be comfortable, and you are such a petrolhead your heart races everytime you put your foot down, and buying that car is not going to bankrupt you, then go for it!
But if you are buying a daily starbucks because it's a routine and easily accessible, and the coffee provided for free at your department/office is 'not as good'. OR, if you have 5 different TV subscriptions Netflix, Disney, Discovery plus, Amazon prime, NOW TV and you realisitically only access one or two of them weekly. OR, if you are leasing a luxury car with high interest rate, using 1/3 of your monthly savings for a flashy luxury car that you are actually using as tool for validation from your neighbours and co-workers.
These are examples of how you should really go though all your expenses in life, scrutanise the meaning and find the 'why'. If you can't justify it, lose it. Trust me, you will realise your saving rate will be much higher than you realise.
We are not talking about enrichment that is based on external validations from others, i.e. impressing others with your valuables, but truly improve and enrich your own daily life.
My examples above covers small, medium and large regular expenses that we may have in our bank statements. Be RUTHLESS to be KIND to yourself.
Having a less-good free coffee is still good enough to start your day, you realistically only need A COFFEE. Having one/two TV subsciption service nowadays provides you and your family with ample entertainment, you don't need the other three. (In fact, you and your family should not be watching so much tv). A small to medium level car just to commute to work is actually what you need, not a £800/month top end BMW just for a 30-minute drive to work.
Trust me, no one else cares, and if they judge you for it, who cares, they are not people who you need validation from.
True wealth is not determined by what you wear, what items you have; but you having full control of your time, doing what you want and who you do it with.
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