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by masta
1555 days ago
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Open a second account and move 10-20% of your salary to that account on the beginning of the month, or whenever you receive your salary. Pay yourself first, before you pay the bills. Use at least 50% of that money to pay off any short term debt, starting with the high interest debt first. Try to avoid any new purchases which are not necessary. Do you really need that new TV right now? Could you live 1/2/3 months without a TV if the old one breaks?
Everything which remains after paying off your debt should go into short term and long-term savings. Your short-term should approach at least 4-6 months of salary, to make sure you can cover any sudden expenses without going into debt.
Put the remaining money into assets like index funds.
Try to increase your initial share taken from salary over time. When you get a raise, make sure to adjust the amount you put aside every month. See how to change your life do adopt to the now reduced income. Eating out less and start to cook for yourself is one thing to start. Check your monthly recurring expenses, do you really need NetFlix, Disney+, HBO AND Youtube Premium? But whatever you do, putting money to the side as soon as you get your salary is the most important step. Maybe start with 5% and increase disproportionately on your next raise. This is what keeps the lifestyle inflation away (Just buying more because you earn more). |
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So, I agree with checking and pruning even the little things, but the cost of all four of those combined come to 0.4% of OP's income. Whatever monthly recurring expenses are eating up $110k, it's likely more the daily $15 coffees or five-nights-a-week food deliveries for $100+ a pop, not a monthly $15 bill for Netflix.
Some things are more expensive in NYC. Netflix is the same cost everywhere.