Get ready to be inspired by this family who saved $40,000 in just three years to travel the world. They downsized their living space, cut cable TV, used coupons and shopped in bulk to save on groceries, reduced debt and automated their savings. They also took on side hustles, such as freelancing and consulting work, to earn extra income. These tips show how a combination of strategies can help anyone save money and achieve their financial goals. So, start implementing these ideas today and see how much you can save!
How we Saved $40,000 in 3 Years for a Family Gap Year
As a family, we always dreamed of taking a gap year to travel the world and explore new cultures. However, we knew that it would require a significant amount of money to make it happen. That’s why we decided to take a closer look at our finances and find ways to save money without sacrificing our quality of life. In this article, we’ll share our journey and the strategies we used to save $40,000 in just three years.
The first step we took was downsizing our living space. We realized that we didn’t need as much space as we thought, and a smaller home would mean lower rent and utility bills. We sold our larger home and moved into a smaller apartment, which saved us $500 a month in rent and utilities.
Cut the Cord
We also cut the cord on cable TV and switched to streaming services. This saved us $100 a month, and we didn’t miss out on any of our favorite shows or movies.
We started using coupons and looking for deals whenever we went grocery shopping. This helped us save an average of $50 a week on our grocery bill.
Buy in Bulk
Buying in bulk was another strategy we used to save money. We purchased non-perishable items like toilet paper, paper towels, and cleaning supplies in bulk, which saved us around $20 a month.
We reviewed our bank statements and found that we were making unnecessary withdrawals from ATMs. By cutting back on ATM withdrawals, we saved an average of $20 a month in fees.
Understanding Wants vs. Needs
We took a closer look at our spending habits and identified areas where we were spending money on things we didn’t need. For example, we were eating out more often than necessary and spending money on clothes we didn’t wear. By cutting back on these unnecessary expenses, we saved an average of $200 a month.
We made a plan to pay off our debt and avoid accruing any new debt. This helped us save money on interest payments and fees. We also negotiated with our creditors to lower our interest rates, which saved us an average of $50 a month.
We set up a savings account and automated our savings. We saved an average of $300 a month by putting money into our savings account before we had a chance to spend it.
We looked for ways to increase our income by taking on side hustles. We started freelancing and selling items we no longer needed online. This helped us earn an average of $500 a month in extra income.
We also started a small business on the side, which helped us earn even more money. We used our skills and knowledge to offer consulting services to other businesses, which brought in an average of $1,000 a month.
In conclusion, saving $40,000 in three years requires a combination of strategies that focus on reducing expenses and increasing income. By downsizing, cutting the cord, couponing, buying in bulk, reviewing withdrawals, understanding wants vs. needs, reducing debt, saving money, and taking on side hustles, we were able to achieve our goal of taking a family gap year. It’s important to remember that every little bit counts, and with dedication and perseverance, anyone can save money and achieve their financial goals.
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