While we all want to invest in the hottest stock on the market, the hardest part can often be finding the extra cash to make that next ASX purchase.
With these 3 easy tips, you’ll be well on your way to buying up big on the next top growth stock and boosting your ASX portfolio higher.
1. Cut back on wants, focus on needs
The nature of the world we live in is that it’s a consumers’ market – you can buy almost anything you want at the click of a button.
However, with great power comes great responsibility, and it’s important to make sure you’re not blurring the lines between your ‘wants’ and your actual needs.
While the likes of Kogan.com Ltd (ASX: KGN) and Afterpay Touch Group Ltd (ASX: APT) has made buying almost anything extremely easy in 2019, it doesn’t mean we have to buy the latest and greatest of everything for our home or our holidays.
You’ve worked hard for that cash flow you receive in your paycheck and it deserves to be spent wisely.
I find the best way for me to cut down my spending to the essentials is to calculate every item I buy in terms of hours worked.
For instance, if you earn $20 per hour and that new TV will cost you $500, I would ask myself if it is really worth 25 hours of work.
2. Eat healthy and eat in
One of the easiest budget blowouts for cash-rich and time-poor individuals is eating on the go.
Whether it’s grabbing a coffee every day at work, buying lunch out or simply getting takeaway in the evening, it can be very easy with the advent of UberEats and similar to get cheap, tasty food in an instant.
However, by buying in bulk and cutting back to lean meats, vegetables and a few key staples such as rice or pasta, you can quickly strip your food budget back and get back to the stock picking.
New York Times bestselling author David Bach calls this the “Latte Factor”, in essence showing that small expenses like a $4 cup of coffee every day can quickly add up to thousands of dollars in a few years.
3. Review your bills and insurances regularly
One real killer for your money-saving habits can be complacency.
While we might be comfortable with our health insurance provider or electricity company, regularly reviewing these bills can often save you hundreds of dollars per year.
Many providers will offer bonus sign-up deals, with very few rewarding long-term loyalty, meaning a few hours of work each year or so could get you a better deal as you cycle through your preferred providers.
All in all, these are 3 easy money-saving tips to get the ball rolling on your savings habits, but it’s far from a comprehensive list.
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Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.