Ok, so you tried to work out your budget, but it just wouldn’t work out.
Now it's time to make some drastic changes. Where to begin?
Whether it is by choice or out of necessity, lifestyle changes are rarely easy.
Some adjustments are necessary but are still occasions of happiness, such as the arrival of an adorable bundle of joy.
In recent times, though, more and more lifestyle changes are motivated by financial difficulties beyond one's control. If you are facing this unpleasant situation, you are not alone.
It can be embarrassing to admit that you are having financial problems. But trying to maintain a lifestyle you cannot afford, just to save face, only makes things worse.
Adjustments to a lifestyle vary from individual to individual or family to family. For some, it might be minor changes, such as making the switch from frequently eating out to home-cooked meals.
For others, bigger changes, such as moving house, might be required.
Fortunately, adjusting to a more affordable lifestyle does not mean that you have to look cheap.
How you choose to make the changes depends on your circumstances. Change is often painful, so, if possible, take it in stages. Make a list of your problem areas and have a workable plan for each one of them. It's easier to stick to a well-thought-out plan of action than a rash decision.
Here are some helpful suggestions:
- Do not buy items just because they are on sale.
If you are a compulsive or impulsive buyer, know your triggers. Avoid going to the mall for window-shopping. When going out shopping, leave your credit cards at home. Carry just enough cash for what is on your shopping list.
Marketers play on buyers' fear of missing out on an attractive opportunity by using limited-time offers. The combination of scarcity and urgency works like a charm. So walk away from "special deals"!
- Avoid buying on credit.
It is better to save up to buy, rather than incur credit card debt.
Saving up encourages self-control.
However, if you already have debt, pay off the debt before you start saving.
- Comparison shopping
Just because you like a certain shop does not mean it has the best prices. Use websites or apps to find sales on essential monthly purchases. Some have found that shopping weekly when there are promotions saves them more money than monthly bulk purchasing, especially when there is free delivery or a minimal delivery charge.
- When possible, buy high-quality items.
Now this may seem to be contradictory. How do you save money by buying more expensive items?
It's simple: good-quality items last longer.
If you saved up to buy a $200 high-quality suit which lasts over 10 years and could even be passed on, it is a better investment than buying a $50 low-quality suit that needs to be replaced within 2 years.
That is not to say you must only buy brand-new items. You can buy good-quality used items from expatriates returning home, flea markets or yard sales.
Speaking of yard sales:
- Have a yard sale for clothing, books, toys, games and other items that you and your family can do without. We often find, after a rummage through the closet, that there are clothes that are still in good condition that we have not worn in six months or more. This is also good for decluttering the house.
- Cancel unnecessary subscriptions.
For example, you can switch from paid premium television services to cheaper streaming services such as Netflix, Prime Video, Hulu, Showmax, etc.
An often-unused subscription is gym membership. Either start using it or cancel it.
Remove your credit card information from websites that have automatic purchases for subscriptions you are not using.
There are many other ways to economise:
- Use what talents or skills you already have to earn some extra cash.
- If your vehicle is high maintenance, trade it in for a smaller, fuel-economic one, or use public transport whenever possible.
- When planning a holiday, search for bargains on tickets and accommodation.
Find what works for you and start making adjustments as soon as you can.
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