How to Increase Disposable Income
We all dream of being independently wealthy. But the reality is most of us must work hard for our money and can only wonder where it all went after we have paid the bills and filled up our gas tanks. You can stretch that paycheck by increasing disposable income through practice.
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Instructions
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Purchase a financial software program. Using these types of programs will allow you to see where your money is spent, where you can cut costs and help you create a budget.
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Stop eating out. If you can't go cold turkey on this one, begin by cutting down the number of times you dine out per month. This applies to ordering in as well.
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Join a carpool. Spreading the commuting cost among other carpoolers will not only save gas money, but routine maintenance such as oil changes will need to be performed less frequently.
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Turn you thermostat up during hot months and down during cold months to decrease your gas and electric bills.
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Review your car insurance policy. If you are driving an older car, it might not be worth it to carry full coverage.
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Skip the coffee shop. That daily $3 latte you buy on your way to work adds up. Invest in a travel mug and bring your coffee from home.
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Limit credit card use. If you can't pay for something with cash, you can't afford it. Limit credit card use to emergencies and avoid the plethora of fees and high interest card companies charge.
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Shop second-hand. Many second-hand stores have gently used quality items that cost a fraction of the retail price.
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Tips & Warnings
Buy generic products. Many generic products work and taste the same as name brands but cost much less.
Take fewer trips to the grocery store. You likely will spend less on your grocery bill if you make only one trip a week.
Don't try to keep up with the Joneses. Buying a big boat just because all your friends have big boats is foolish, not to mention, expensive.
Know the difference between want and need. You don't need a 52-inch plasma screen TV or the newest video game console; you want them. What you need is a roof over your head and food to eat. Know the difference.
