Reducing Expenses

Controlling expenses to maintain the standard of living is the chief challenge faced by those trying to exit the rate race. A few life choices aimed at reducing monthly expenses can make the overall task of attaining financial independence less onerous:

a) Choosing To Own As Opposed To Rent:

Any item used on a daily basis is a candidate for owning as opposed to renting. Examples include the house one occupies and automobiles. Normally regarded as the major outlays of money one might ever make, home ownership is a special case that merits special attention. We have explored the issues associated with home ownership through a series of articles (click to read them).

A variation on the same theme is to reduce/eliminate subscription style expenses. Cable TV, DSL, Movie Rentals, Cellular Phones, Club Memberships, etc fall in this category. Your best bet is to always choose life time membership without monthly charges, if such a choice exists.

b) Frugal Living:

Frugal living is a life choice that allows people to spend less money for the same standard of living that they are used to. In exchange of spending less money, the practitioner spends a little bit of extra time and energy looking for “better deals”. We have looked at our experience practicing frugal living through a series of articles (click to read).


Related Posts:
  1. Exiting the Rat Race - Definition.
  2. Rat Race Exit Strategies
  3. Passive Income - Part 1 - Network Marketing.
  4. Passive Income - Part 2 - Royalties
  5. Passive Income - Part 3 - Rental Income
  6. Passive Income - Part 4 - Dividends.
  7. Passive Income - Part 5 - Pension Plans
  8. Passive Income - Part 6 - Employer Plans
  9. Strategies to Beat Inflation.
  10. Strategies to Reduce Expenses.
  11. Frugal Living - A Definition to go by
Last Updated: 06/2011.





1 comment :

Anonymous said...

Hey, interesting post! bookmarked :)

Labels

401k ( 15 ) Abad Turtle Beach ( 1 ) Abrams Capital Management ( 5 ) Acoustic Electric Guitars ( 1 ) Acoustic Guitars ( 1 ) ACT ( 1 ) Activist ( 4 ) Address Change ( 2 ) Advanced Placement ( 4 ) air asia ( 2 ) airlines ( 2 ) Akre Capital Management ( 16 ) Alex Roepers ( 5 ) AP ( 4 ) apartments ( 2 ) Appaloosa ( 15 ) ARIUS ( 1 ) Arlington Value Capital ( 3 ) Atlantic Investment Management ( 5 ) Ayemenem ( 1 ) Bangalore ( 3 ) Bangkok ( 2 ) Bannerghatta National Park ( 1 ) barbuda ( 2 ) Battery Park ( 1 ) Baupost ( 2 ) Baupost Group ( 17 ) bay area ( 2 ) BDCs ( 3 ) Benjamin Graham ( 2 ) Benjamin Graham Model ( 2 ) Berijam Lake ( 2 ) Berkshire Hathaway ( 29 ) best sites ( 9 ) Bill & Melinda Gates Foundation ( 11 ) Bill Ackman ( 19 ) Bill Gates ( 12 ) Blue Ridge Capital ( 11 ) Blum Capital Partners ( 12 ) books ( 4 ) Boone Pickens ( 2 ) BP Capital Management ( 2 ) Brave Warrior ( 3 ) Brave Warrior Advisors ( 12 ) british honduras ( 2 ) Bruce Berkowitz ( 19 ) Bruce Fund ( 10 ) Camcorders ( 3 ) canada ( 4 ) cancun ( 3 ) CANROYs ( 7 ) Cantillon ( 12 ) carl icahn ( 9 ) Carl Ichan ( 8 ) casino ( 3 ) Casio ( 2 ) CBRE ( 2 ) CEF ( 2 ) Charles Akre ( 14 ) Charlie Munger ( 11 ) Chase Coleman ( 11 ) Chou Associates ( 16 ) Christmas gifts ( 7 ) Christopher H. Browne ( 7 ) Chuck Akre ( 11 ) Cisco ( 2 ) Class Action Settlements ( 2 ) CLEP ( 1 ) Coatue Management ( 11 ) Cochin ( 2 ) coin collecting ( 266 ) collectibles ( 266 ) Consumer Product Reviews ( 29 ) cook islands ( 2 ) coonoor ( 2 ) Covered Calls ( 2 ) credai ( 4 ) Daily Journal ( 11 ) Dalal Street ( 8 ) Dan Loeb ( 10 ) DAT ( 1 ) David Abrams ( 5 ) David Einhorn ( 22 ) David Swensen ( 17 ) David Tepper ( 15 ) David Winters ( 15 ) DCF ( 2 ) Digital Piano ( 3 ) Dinakar Singh ( 11 ) Donald Yacktman ( 10 ) dry bulk shipping ( 2 ) Duquesne ( 16 ) Education ( 37 ) Edward Lampert ( 12 ) Egerton Capital ( 11 ) Egypt ( 3 ) Elementary Education ( 10 ) Elementary School Textbooks ( 5 ) eReaders ( 2 ) Eric Mindich ( 11 ) ESL Investments ( 7 ) ESPP ( 6 ) ETF ( 2 ) ETN ( 2 ) Eton Park ( 11 ) Everyday Musings ( 58 ) Exam Prep ( 7 ) Exiting the rat race - how to? ( 19 ) EXPLORE ( 1 ) Fair Value Estimates ( 4 ) Fairfax Financial ( 4 ) Fairfax Financial Holdings ( 14 ) Fairholme ( 19 ) Fairpointe ( 11 ) Family Office ( 4 ) FD Laddering ( 1 ) Financial Independence ( 93 ) Fisher Asset Management ( 10 ) Flash Camcorders ( 3 ) flat ( 4 ) flats ( 2 ) Flip ( 3 ) Francis Chou ( 16 ) free ( 17 ) frugal ( 3 ) Frugal Living ( 34 ) Fund Holdings ( 710 ) futures ( 2 ) FVE ( 2 ) gambling ( 3 ) garmin ( 2 ) Genting ( 2 ) george soros ( 21 ) giveaway ( 15 ) Glenn Greenberg ( 16 ) Glenview Capital ( 10 ) GMAT ( 1 ) Google ( 2 ) Gotham Asset Management ( 7 ) gps ( 4 ) GRE ( 1 ) Greenlight Capital ( 22 ) Guitars ( 3 ) Half Marathon ( 2 ) Hawaii ( 2 ) Hedge Funds ( 729 ) HELOC ( 1 ) High School Education ( 7 ) High School Textbooks ( 6 ) HOA ( 3 ) hobby ( 17 ) holiday shopping ( 7 ) Holidays ( 3 ) Holyland ( 11 ) Home Improvement ( 2 ) home ownership ( 5 ) Homes ( 18 ) Homeschool ( 18 ) Houses ( 2 ) Housing ( 3 ) Hykon ( 2 ) Ian Cumming ( 15 ) Icahn Enterprises ( 6 ) india real estate ( 5 ) Infinuvo ( 6 ) Insurance ( 2 ) invesco ( 17 ) investing strategies ( 2 ) Investment Portfolio ( 94 ) Investment Research ( 10 ) Investments ( 7 ) iRobot ( 3 ) Irving Kahn ( 10 ) israel ( 5 ) Jason Maynard ( 10 ) Jefferies ( 2 ) Jeffrey Bruce ( 11 ) Jeffrey Ubben ( 12 ) Jerusalem ( 2 ) Jim Chanos ( 11 ) Joel Greenblatt ( 7 ) John Armitage ( 11 ) John Griffin ( 11 ) John Paulson ( 17 ) Joho Capital ( 15 ) Jordan ( 3 ) Joseph Steinberg ( 9 ) Julian Robertson ( 4 ) Kahn Brothers ( 10 ) Kakkanad ( 4 ) Kanyakumari ( 2 ) Kawai ( 2 ) Ken Fisher ( 10 ) kerala real estate ( 5 ) Kids ( 49 ) Kids Yamaha ( 3 ) Kindle ( 2 ) kochi ( 8 ) Kodaikanal ( 2 ) Korg ( 2 ) Kraft ( 2 ) Kuala Lumpur ( 2 ) KWA ( 2 ) Kynikos ( 11 ) laptop ( 5 ) Larry Robbins ( 10 ) Las Vegas ( 2 ) Leon Cooperman ( 12 ) Leucadia ( 2 ) Leucadia National ( 13 ) Lone Pine Capital ( 9 ) long ( 6 ) long call ( 2 ) long puts ( 3 ) Lou Simpson ( 15 ) LSAT ( 1 ) Mahabalipuram ( 2 ) Malaysia ( 3 ) Marathon ( 2 ) Mark McGoldrick ( 10 ) Markel ( 11 ) Mason Hawkins ( 4 ) MCAT ( 1 ) Melinda Gates ( 6 ) memorabilia ( 266 ) MFP Investors ( 11 ) Michael Dell ( 13 ) Michael Price ( 11 ) Middle School Education ( 4 ) Middle School Textbooks ( 3 ) Mini Notebook ( 2 ) MODUS ( 1 ) Mohnish Pabrai ( 21 ) mortgage ( 2 ) Mount Kellett ( 10 ) MSD Capital ( 13 ) Music ( 6 ) Mutual Funds ( 4 ) mysore ( 2 ) Nelson Peltz ( 9 ) Netbook ( 3 ) Notebook ( 2 ) numismatics ( 266 ) O-Duster ( 1 ) Oahu ( 2 ) offers ( 2 ) Ole Andreas Halvorsen ( 10 ) Omega Advisors ( 12 ) online tax ( 3 ) ooty ( 2 ) Options ( 4 ) Pabrai Fund ( 17 ) passive income ( 7 ) pattaya ( 2 ) Paulson & Company ( 7 ) Paulson and Company ( 9 ) PEG ( 2 ) Pershing Square ( 19 ) Phil Fisher ( 5 ) philately ( 283 ) Philippe Laffont ( 11 ) Piano ( 9 ) PLAN Test ( 1 ) portfolio ( 4 ) Prem Watsa ( 17 ) product reviews ( 11 ) Property Taxes ( 2 ) PSAT ( 1 ) R2I ( 24 ) R2I Finances ( 3 ) R2I Housing ( 5 ) Raising Kids ( 41 ) Rat Race ( 15 ) RBS Partners ( 10 ) reading ( 5 ) real estate ( 6 ) Reducing Expenses ( 2 ) REIT ( 3 ) Retirement Portfolio ( 9 ) Reviews ( 80 ) Richard C. Blum ( 12 ) Robert Bruce ( 11 ) Robert Karr ( 15 ) Robotic Vacuum ( 2 ) Roland ( 2 ) Roomba ( 8 ) schooling ( 2 ) Sears ( 7 ) seeking alpha ( 2 ) Services - Reviews ( 33 ) Seth Klarman ( 19 ) Shipping ( 5 ) Shopping ( 3 ) short ( 5 ) short calls ( 2 ) short put ( 2 ) short puts ( 2 ) short selling ( 5 ) Ski ( 5 ) Sled ( 4 ) Solar Stocks ( 13 ) Soros Fund Management ( 14 ) Southeastern Asset Management ( 4 ) Southwest ( 2 ) spin-offs ( 2 ) SQ Advisors ( 15 ) stamp collecting ( 283 ) Stanley Druckenmiller ( 16 ) Statue of Liberty ( 2 ) Stephen Mandel ( 9 ) Stock Analysis ( 84 ) Stock Investments ( 4 ) Stock Portfolio Updates ( 6 ) stocks ( 3 ) summer ( 2 ) tax ( 5 ) TaxAct ( 2 ) TaxCut ( 1 ) Teacher's Editions ( 5 ) Technology ( 4 ) Test Prep ( 11 ) Thailand ( 3 ) Thekkady ( 2 ) theme park ( 2 ) Third Point ( 10 ) Thomas Gayner ( 11 ) Thyra Zerhusen ( 11 ) Tiger Cub ( 22 ) Tiger Global ( 12 ) Tiger Management ( 12 ) Time Square ( 2 ) TOEFL ( 1 ) TPG-Axon ( 11 ) Travel ( 277 ) Travel Reviews ( 80 ) Trian Fund Holdings ( 9 ) trip report ( 21 ) TurboTax ( 3 ) Tweedy Browne ( 10 ) Vacations ( 28 ) value investing ( 11 ) ValueAct ( 5 ) ValueAct Holdings ( 6 ) Vancouver ( 2 ) Video ( 3 ) Viking Global ( 10 ) Wallace Weitz ( 10 ) Warren Buffett ( 28 ) Wayanad ( 4 ) Weitz Investment Management ( 9 ) wilbur ross ( 17 ) William Von Mueffling ( 12 ) Wintergreen Advisors ( 15 ) Yacktman Asset Management ( 10 ) Yale Endowment ( 17 ) Yale University ( 7 ) Yamaha ( 7 ) YDP ( 1 ) YPG ( 1 )