The number 1 thing to scrimp on to increase your savings
Americans may be an incredibly unique assortment of people, but the capitalist system surrounding us has created one common desire: wealth. From the celebrities to the impoverished, every American dreams of striking it big. It is the American dream, and no one, besides Jay Gatsby, can deny that. However, the premier way to obtain wealth is debatable. Catey Hill, an editor for Market Watch, believes her way to be the best. She claims that the number 1 way to get a fat savings account is through cutting essential expenses (housing and transportation) instead of cutting discretionary spending. The reason for her claim has merit; it is easier to cut spending on housing and transportation because you only have to make one decision. Once you buy a house or a car, the decision is over, and you have already saved a large chunk of change by buying an older car or a modest house. On the other hand, if you want to save by cutting discretionary spending, you have to make daily decisions that cause decision fatigue. For example, if you eat out three times a week, and you want to save money by only eating out once a week, you have to make two decisions a week, eight decisions a month, one hundred four decisions a year, etc. Making these decisions is tough, and Catey believes that after a while, the person will fatigue and sway from their savings plan. Catey’s claim is intelligent, and it does have data to back it up. However, not every person wants to own a moderate house or an older car. Some people like to splurge their money on big houses and fast cars, so this strategy would not work for them. That is the beauty of America though. If you don’t want to strike it rich by saving, you can do it through investment, high-paying employment, entrepreneurship, hard work, etc. There is no best way to strike it rich; America has limitless ways. For Americans, the message is simple; find out how you want to live your life, and cater your wealth around the way you want to live. If you don’t want to cut expenses, then work harder, work more hours, develop a new product, invest in the stock market, etc. Every success story has a different beginning in America. What’s yours?