Despite the recession, many people have still enjoyed comfortable lifestyles where they can pick up new gadgets and re-dress themselves on a regular basis. However, the reality is many of us still live from wage to wage. This leads to a negative effect as many of us binge spend, leading to a huge up and down of good days and bad days.
In the USA alone, there is an estimated $850 BILLION of credit card date, and with the average household wage being $16,000, the scale is tipping in one way massively. There is no need to go down the credit card route, however, there are many ways you can salvage yourself financially by making a few hard decisions, and becoming a bit more frugal with your expenditure.
Not only does this lead to a more organised lifestyle, but it cuts down on stress as you do not have to worry so much, and go from the high of payday to the stress of bank charges. It covers you from any unwanted charges, overdrafts and repayment schemes you struggle to cope with, and although payday loans from sites such as wonga.co.za may seem attractive when you’re short a few bucks, in the long run you’re better off trying to budget yourself with the money you already have. In the face of losing a little luxury and making a sacrifice or two, you can lead a much more balanced lifestyle.
Need Vs. Want
This is one of the most important aspects of living a better financial life. For example, do you need to have take-out for dinner? Or do you want it? This is one of the decisions that most of us fail to make when it comes to needless expenditure. Yes, take-out is fine once a week, but many of us enjoy three to four take-outs a week. An average take-out is roughly $20, meaning you are could be saving up to $80 dollars a week. That is a big monthly saving, and that is just deciding that you do not need take-out!
Analysing what you need – nutritious food, hydration, toiletries and other household necessities – compared to what you want is a very difficult yet mature thing to do. If you can balance it to 80-20 in the favour of need, then you are doing well. It may mean having to wait until things are better financially to buy your latest video game, but it’s not worth it if you have to cut corners to make ends meet on the account of wanting something too much.
Time is money
A way that is very powerful in teaching you just how much you are spending as equating it as your time. If you earn $10/hour, and you work 40 hours a week then weekly you make $400. Consider that if you have already bought $100 worth of shopping that week, then if you have enough food in the house to make do, and then you do not need to spend 2 hours of your time worth on take-out food.
This is an important way to consider things, as you know how hard you work and how much you struggle to earn everything you do. Is a pair of new shoes you may only wear on occasion really worth an entire shift of your hard work and strain? Or would that money perhaps better be served improving your home? Or put towards a long-term aim?
Overall, it’s very easy to stop expenditure needlessly if you just motivate yourself to think along those two lines. Realizing the importance of both your time and what you actually need versus what you want is going to make you savings in the long-term, if you can just have some will-power!