5 Tips for Frugal Living, According to George Kamel
Ramsey personality George Kamel knows that for many people, rising grocery costs and stagnant wages can make it hard to establish a strong financial future. He has helped countless people use easy-to-follow steps to pay off debt and build wealth.
In a YouTube video, the author and podcaster answered his followers’ top frugal-living questions. Here are five tips for saving money and living a frugal life.
1. Prepping Meals Ahead
When it comes to food, Kamel recommended being proactive to avoid going over budget. He suggested dedicating time each week to prepare meals. The frugal-living expert encouraged his subscribers to plan for cravings instead of being tempted to overspend each week at the store.
As reported by the U.S. Bureau of Labor Statistics, food accounts for 12.9% of annual expenditures on average, second only to housing and transportation. Approximately $6,224 is spent on food at home each year. Given the hefty expense, taking time to shop the best deals and buy only what is needed can help save big.
Read More: The Nuclear Savings Rule — 10 Frugal Living Tips From the 1950s Era
Check Out: 8 Things You Must Do When Your Savings Reach $50,000
2. Investing With Cash When It Comes to Real Estate
When asked about investing in real estate, Kamel explained to his followers that it is best to invest in cash. He also recommended that your primary home be paid off before investing in a second property. He encouraged prospective investors to start small. For investors looking for stocks, he suggested index funds in a non-retirement brokerage account.
According to the experts at Redfin, there are several steps potential real estate investors should follow. These steps include assembling a team of experts, factoring in taxes and getting insurance coverage.
3. Spending on Something Fun
For individuals wondering how to wisely spend money after achieving a debt-free lifestyle, Kamel suggested adding a line item for fun to their budget.
He explained that money could be put into a sinking fund for something like a vacation to ensure that savings goals are still being met.
4. Moving Out
Making the decision to move out can be challenging, particularly for recent graduates. Kamel encouraged individuals trying to decide if they are financially ready to move out of their parents’ house to start with a budget.
The housing experts at Zillow suggested individuals wondering whether they can move out consider their financial and emotional readiness. The average rent in the U.S. is currently $2,000 per month, which may not be feasible for all people without assistance.
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