This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Are you spending more than you should?
Maintaining all housing costs at 30% of your gross income is recommended. But what if you could find decent quality housing for 15-30% of your net income – including maintenance and utilities?
Are your housing costs sky-high because you live in a premium zone (e.g., California, New York, or Washington)?
If you’re not living in an expensive city, and your housing costs account for more than 30% of your total gross income, then where could you eradicate and decrease?
Some options:
Move to a different locale
Downsize
Eliminate superfluous utility usage and housing costs
Contract cheaper, but quality repairers (if you buy or rent a house)
2. Transportation
Many people are now working remotely due to the pandemic.
“Globally, 16% of companies are fully remote, according to an Owl labs study. This same study found that about 62% of workers aged 22 to 65 claim to work remotely at least occasionally. This study also found that 44% of companies do not allow remote work of any kind.” (source: apollo technical)
However, many people still use regular transportation to get to and from work along with other regular use. Whether through car, train, bus, plane, etc.
How much are you spending each month on transportation?
Review your budget to learn what the monthly trends are.
3. Taxes
If you work for a W-2 job, then a large portion of your paycheck goes straight to the government, and there’s nothing you can do about it.
We pay taxes on everything: income tax, sales tax, property tax, capital gains tax, and the list goes on and on. If you want to decrease your tax burden, become an active investor or property owner; the government rewards these two types of people because they help provide jobs and fuel the U.S. economy.
4. Utilities and household maintenance
If you’re not careful and buy or rent more house than you can afford, you’ll learn this truth at a deeper level when the utilities and maintenance bills come. If you can barely afford the house, I don’t fathom you’ll be able to afford the rest that comes along with it.
5. Food
We don’t cook our food anymore; we buy premade meals or eat out cheap. It’s all about convenience. However, convenience adds up – whether upfront or later (with our health).
Create a budget for food and determine how much you can successfully get by while feeding your family with nutritious meals. It’s not bad to eat out now and then, but it’s always better to cook, so you can save money and increase your chances of experiencing quality health.
6. Social Security contributions, personal insurance, and pensions
Worried about investing in something that may not even be around when you reach retirement age? You’re not alone. It’s challenging to avoid paying social security. The best way to manage this burden is to personally invest in your financial future.
7. Debt payments or savings
“According to financial experts, the percentage of Americans in debt is around 80%. 8 in 10 Americans have some form of consumer debt, and the average debt in America is $38,000, not including mortgage debt. Owing money just seems to be a way of life for Americans, as collectively we have $14 trillion in debt.” (Source: Shift Payments)
If we’re not creating more debt, our money is going towards debt repayment. The best way to decrease the amount of money you waste on paying down debt is to avoid debt in the first place. Spend less than you earn; that’s all it takes.
A better place to put your money is in an investment account. It has a much higher rewards rate than debt.
8. Healthcare
As I mentioned in the food column, eating out less can be highly beneficial for your health, leading to lower healthcare costs. Food affects our health more than people give credit. Our bodies communicate with us by what we feed them.
Eat better. Live better.
Attend your regular checkups and doctor visits and get tested early, so you can stay on top of your health, which can still lead to lowering your healthcare costs.
(Article Source: The Motley Fool)
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.