Make More Money by Just Cutting Back on Coffee
The initial means to cope up with debt payments is to focus on cutting back certain expenses that are said to be unnecessary. This is an idea referred to as a Latte factor introduced by David Back. This aims to eradicate tiny chunks of daily expenses, which can result in saving more money than you can put towards micro-investment or debt payments.
The Real Price of Your Coffee
Let’s take, for example, someone who is fond of getting a lavishing coffee every afternoon break or every morning before going to work in a fancy cafe. Say the coffee price pops at $4, which makes it $20 in one week, $80 every month and a total of $960 in one year.
Sounds a lot isn’t it? Just imagine if you omit to spend this amount and set it aside as your savings. The point is cutting back the tiny portion of our daily expenses, which may not be necessary can be a lot when put together over time.
Other Examples of The Latte Factor
You will never know not unless you itemize your expenses every month as to what and where you can cut back. Below are just a few of the things that might help you decide on ways to cut back your expenses.
- If you don’t necessarily need the data plan in your cell, you can cancel it and save a significant amount each month that can be a lot of sum up over a year.
- You can bring food to work instead of buying lunch to a nearby restaurant
- If you have magazine subscriptions that you constantly billed each month, you can cancel it to potentially save a hundred dollars in a year.
- Refrain from ordering fast food, instead, you can have home cook meals which are healthier and much cheaper.
- You can cancel your cable and use alternatives such as Netflix to watch the movies you prefer and save more than five hundred dollars a year.
The bottom line in cutting back your expenses is to allocate certain funds to the expenses that are considered as a priority.
Justifying Latte Factor
When you cut back on your expenses, you might perceive the amount as insignificant, but the moment you omit every single expense that can be canceled, eliminated, or adjusted, you can see how much money can save when out together and calculated over a period.
How Difficult Is It to Earn an Extra $4 A Day?
At some point, we don’t want to be too hard o ourselves. So, what if you can earn an extra $4 a day just to suffice your expense for a lavishing coffee? Well, in fact, there are certain ways how you can earn an extra $4 a day. If you can offer services or teach something as a sideline then your chances of earning extra to suffice your coffee craving might be possible. The point is as much as possible while you’re paying your debt, you can’t afford to throw a dollar on things you can live without.
Turning $4 to $1,000
Earning an extra $4 may not be a lot of money, yet if you’re able to figure out how you can earn it, it might be easier for you to increase your earning into a hundred and turn it into thousands. What you need are discipline and hard work.
Earning Extra Income
As you work full time, your dollar might have a name on it before it even reaches your hands. This is the reason why increasing your income is a must if your paycheck appears to be just adequate for your monthly expenses.
Moreover, earning extra might even heighten your enthusiasm as you get paid immediately. So, whatever your sidelines you got to earn extra, it might motivate you more to save, invest, or pay off your debts even faster.
Dream Big and Go For the Win
Cutting expenses to live according to your budget does not mean your too harsh on yourself. It just equates to how you value your money and every dollar that you earn. Furthermore, getting additional jobs or sidelines to earn extra will also allow you to compensate for the amount that you need to start saving, investing, or pay more than the minimum debt payments each month. All you need is to start thinking of the skills and talents that you possess that might potentially help you earn extra and go for each opportunity that comes in your way.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.