Living expenses

Personal finance is a topic I’ve always enjoyed studying.

How can people, individuals, manage their finances in the most efficient way while also satisfying the economical unlimited wants and desires of being human?

How about we do some incredibly rudimentary examples of personal finance:

$1000 apartment or $800 shared with your college friends

$15 UBER ride or walking OR $2 subway train

$15 lunch at Pret a Manger OR making your own lunch for $5

$5 Starbucks coffee vs. no coffee

And the biggest one that I’ve been trying to cut out for my living expenses:

Haircuts.

Yes.

I get a haircut quite regularly, around every 3-weeks.

Nothing fancy. I’ve been trying to grow out the top of my hair so I’ve just been asking for my sides and back to be shaved and cleaned up. It takes less than 10-minutes, really, and it’s really not worth my money.

The opportunity cost of getting my sides fixed is roughly $30. $20 for the haircut, $10 for my time spent commuting to and from.

Now, because of how simple of a haircut I need every 3 weeks, I can very much do it myself.

$30 shaver on Amazon and learn how to be self-sufficient.

That’s 17 fewer haircuts I’d need every year, 17*25=$425 minus the initial $30 for the shaver = I’d save $395 in the first year, and then $425 every year after.

It doesn’t seem like much at first, but it adds up.

Invest that $395 into the stock market, and expect even just an average of 7% annual interest compounded over 20 years, I’d have $16,193

Do it for 40 years and I’d have $78,855.

Just by cutting my own hair.

How’s that for self-sufficient?

Read more finance stuff on my Down to Finance website:

www.downtofinancedtf.com

 

 

 

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[Book Review] The Wealthy Barber Returns – David Chilton

wealthy barber returns

David Chilton sounds like me, but trapped in a 40-year-old body.

His writing style is extremely informal, and he often uses sarcasm, puns, and incredibly badly timed & cringe-worthy jokes…

Basically me!

Either way, his books, The Wealthy Barber & The Wealthy Barber Returns are both great finance books.

As the name suggests, the book teaches you how to be wealthy, even if you were a barber.

The concepts are basic and fundamental; great for anyone!

Save more, spend less, invest and compound, and don’t get yourself in debt.

But Chilton not only provides great examples and humorous tips on how to do all those things, but he also understands that although the theory is simple, it is hard to execute.

The chapters are short (often 2-4 chapters each).

The book is broken down into many segments so it feels like actually a really short read.

I aspire to be a financial advisor or someone who helps the general population with financial advice…and although I do think that I know a good amount of information on finance, it seems awkward to take the advice for an 18-year old, doesn’t it?

I hope for a world where everyone, my friends, family, and the general population is financially literate and is not burdened by the concept of money. And I think a great way to spread financial knowledge is through reading.

And that’s why you need to read his book…Read this book if you want to be a Wealthy Barber.

Good Luck and always reach out! I am always free to share my investment journey