What Would I Have to Give Up in Order to Save 10% of My Income?

Business L40 Essay

In order to save 10% of my yearly income I would have to give up buying new things and settle for being a thrifty guy. I don’t think that would be a personal sacrifice, because I already go to thrift shops often. I also should avoid impulse buying, or seeing something that I think I need and buying it, even though I actually don’t need it. I really want to be able to save enough money to finance my investments, so how I spend my money will be something that I’ll monitor and manage. I do find myself wanting new things like clothes, and in my opinion buying used clothes is gross, so I could buy them from outlets and other cheap places.

Another new thing that I’d have to do without is a car.  I’d buy an old truck from a dealer not a person. I feel inclined to trust a dealer more than a random private seller. I’d avoid buying a new car because it losses so much value the second it’s driven off the lot.  An older car will maintain the value that you bought it at for a much longer period.  Additionally, most people buy new cars because they like the idea of new, but used is fine by me because its financially wise and I just need a car to be functional, not trendy.

I would never go into debt, especially in the beginning years, that would honestly be a waste of valuable capital. I want to save around 15 to 20 percent of my income for investments. I want to be able to have enough capital to buy 2-3 houses and jump right into real-estate investing. I think that once I get into real-estate investing it will be easier to save more of my income as time goes by because I’ll have more capital coming in.

~KT

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