Proverbs 22:26 – “Be not thou one of them that strike hands, or of them that are sureties for debts”
Debt Hack: 3 Largest Expenses to Tackle
Most people don’t think about tackling their largest expenses when it comes to being debt free and there are at least 3. We will list some debt hacks in this blog to give you a better idea.
According to Visual Economics, the largest expense for the average family is housing or shelter.
The typical rent or mortgage makes up approximately 18 to 30* percent of the family’s income.
Reducing your housing costs today frees up extra cash you can put toward your retirement savings.
Getting rid of your mortgage before retirement can cut living expenses dramatically.
And it improves your financial security because you don’t have to worry about losing your home if an unexpected expense blows up your retirement budget.
You may have to make some adjustments to your budget to free up cash for extra mortgage payments.
I’m sure you saw that we offer a FREE download for a starter-studio plan?
It will cost less than $10K to build it and you can always add-on later if necessary.
Yes, you do have to find some land to build it on but most importantly you would own it and have no mortgage at all!
But if downsizing proves to be much cheaper, it’s worth considering.
Cost of Health Insurance
The United States currently ranks highest in healthcare spending among the developed nations of the world.
Despite the U.S. government having the highest healthcare budget, much of the cost is not publicly financed.
Federal health spending is projected to increase from 25 percent of total federal spending to about 40 percent by 2037.
A good diet, getting rest, exercising and taking vitamins are a way to stay healthy!
Some people choose not to carry health insurance at all to save money.
This is a personal choice, no I am not recommending you do this. I am just letting you know your options.
Choose generic medications if you must take any, this option is most cost effective over brand.
Ask the health care physician’s do they accept cash for payment rather than using insurance?
Believe it or not, some health care providers find it much easier than filing claims to a health insurance company.
Tackling the cost of food
The average American family spends $151 a week on food. You make food spending choices every time you visit the grocery store.
All of those choices are made as the result of a set of “rules” that you have in your head.
The single biggest money saver when it comes to a family’s food budget is eating at home.
Too many people have the perspective that making one’s own meals at home is difficult and messy.
Always check your weekly local ad of grocery stores you shop at for discounts.
Before you even head to the grocery store, make a grocery list. Stick to it.
If you typically shop at a more expensive food retailer, you really should try out a discount food retailer.
It’s pretty wasteful to spend extra money on a label.
Conclusion
There are 3 major expenses you must tackle if you plan to retire early or just want more financial freedom.
Housing (shelter), health care and food are the largest expenses we face in this world 🙂
Learn to garden, growing your own food will cut cost.
Having health insurance is not always necessary, if you have savings to cover those costs.
Consider building your own home so you could experience a mortgage-free life. We offer a free download of a 300 sq. ft. studio that can always be enlarge when you add on.
You do not have to go into debt to feel satisfied or that you accomplished something.
Eating leftovers will definitely save you money. You have to create a budget and stick to it.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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