How can you cut back on spending when all your money is covering your must-haves, like a roof over your head and a way to get to work?
In All Your Worth, Warren and Warren Tyagi tell the story of Brett and Brandi, A hard working couple who always take overtime and never take vacations. Still, there was nothing left for an ice cream after all the regular must-haves bills were paid. What to do?
Start with some big-ticket items: like your car, if you have one.
First, do you need a car? AAA estimates that it costs about $8,698 annually to own an average sedan.
How much time and money would it cost to take public transit, lift, uber or a car-sharing service?
If you need a car, which is a must-have in many areas of the United States, what kind of car do you need? Could you trade in your current car…
For a car that is safe, reliable and does not guzzle gas?
The annual price of car ownership goes up to $10,624 for an SUV. Brett and Brandi traded-in their SUV for a six-year-old sedan. Saying goodbye to a shiny SUV could mean saying hello to peace of mind.
A car payment is something people get used to. Like the energy bill or a mortgage, but it is possible to not have a car payment.
Though this may mean not driving the car you want or not getting a new car very often.
Another place to look for savings: health insurance. Find out how next week at Cashtoons.com.
All Your Worth: The Ultimate Lifetime Money Plan by Elizabeth Warren and Amelia Warren Tyagi.