This year, is all about bouncing back from difficult financial times. The economic downturn is something that has affected all South Africans. From the very rich to the very poor, all of us were affected by the recession on some level. Some, more so than others. A small comfort can be found in this fact, because at least you are not alone.
During 2013 we can focus on finding a new financial balance. The most logical way to do this is to start living below our means. Living below our means may seem like an impossible concept, because we all know that often even basic living expenses are difficult to cover. However, there are definitely ways that any person can cut down on spending and start living below our means.
Here are some great tips to get Started
It all starts with a mindset change.
Being rich is not about owning the best car or the biggest house. Being rich is about being a good provider for yourself and your family in terms of basic needs.
If your family is well nurtured with healthy food, a warm bed and of course lots of love, everything else is a bonus, not a necessity. So start with working on your mindset about wealth, and financial balance will flow naturally from there.
Once your mindset is tuned to financial balance, you can apply yourself through simple and practical ways to live below your means.
The big, bad, boot of bags… There is a big difference between grocery shopping and shopping for the sake of burning money. The easiest way to save money in this area, is to avoid shopping malls altogether. At least until you are financially back on your feet again. If you want to connect with your friends, don’t do it at a shopping mall!
Look after your health… By eating healthily, following a basic exercise routine, and getting plenty of rest, you will be able to save thousands and thousands of Rands over a lifetime. Do yourself a favour and go through the medicine cabinet in your home to determine how much money you have wasted in the last few years, by not taking care of your health. The irony is that the medicine is only half used and collecting dust in the cupboard.
Use the internet wisely… The internet, our modern best friend, can benefit our lives in many ways. But let’s face it – we know when we are just wasting precious time (and bandwidth) by surfing the net for the next best thing to entertain us.
Entertainment… We all need to unwind after all! This is how we rejuvenate ourselves from work pressure and stress in general. Have you ever considered the many ways that you can cut down on your entertainment costs? And through very obvious ways! Here is an obvious one – next time you feel like watching a DVD, why don’t you borrow one from a friend or from your family?
No more junk food, EVER… Unless you are in a financial position that allows for a lifestyle of junk food or pricey restaurants, stop eating junk food immediately. Walk to the fridge right now and throw away every single junk food menu that is in your face before even having the chance to open your fridge door! Cook your own healthy meals to taste and flavour – it will be so much cheaper and so much more rewarding.
And your last tip for today:
Get a pair of scissors… The scissors is for cutting up any and all credit cards. This one hardly needs any explanation. Credit card debt, be it classical credit cards, clothing credit cards or décor credit cards – is literally the death of your financial independence. You already know this, so take that 1st step and cut up those cards. Only ever spend cash or with a debit card.
These are only a few valid ways to curb unnecessary spending. Always keep an eye on our website for more interesting and practical ways to save your money. We wish you all of the best with your financial wellbeing and encourage you to contact us with any questions!
For more financial advice, contact us today.
Below is a good video from Suze Orman
Here is another great video on living below your means: