Want to Save Money? How About a Radical Lifestyle Overhaul?
Everybody wants to save money, but nobody wants to give up on anything. Saving is uncool and scrimping is unsavory.
Scrimp and save? Not when you are still young!
Not when life is meant for living!
We should be going out every weekend. Partying, drinking, buying cool clothes, and splurging on ourselves. After all, we are young only once! And aren’t these the best years of our lives?
That right there is the root of all your money problems.
That short-sightedness towards the larger picture and genuinely believing that certain decades are better and more “livable” than others. It’s not only our fault. We are constantly bombarded by ideas, ideals, and advertisements regarding what we should do and buy to be considered a part of the “in” crowd, or as “having lived”.
“You haven’t lived until you’ve been to Ibiza!” screams a poster promoting a tourism company.
Being young = having loads of fun = splurging loads of money.
Doesn’t take a genius to see this line of thinking is leaving many of us poorer.
In this post we look at some smart solutions to help you get out of this vicious circle. Some of the following requires you to reframe your view of money and indeed what you should be doing with your life. Others you can start on straightaway. But all are super-pragmatic and guaranteed to put an end to your money problems over time.
Change Your Relationship with Money
There are no quick fixes for people with persistent money woes. If you want to take financial worries out of the equation entirely you need to change your relationship with money.
Show money more respect and cut down your regard for the shiny stuff.
Here’s what you don’t need in 2014.
- Upgrade to the latest smartphone
- Yet another tablet
- A third vacation to Cancun
- Another $200 shoes
- A $400 winter coat (What’s wrong with the one you purchased in 2012?)
- Expensive restaurant meals every month
- Regular takeout meals
- A hundred miscellaneous things you will buy that you don’t have much use for.
- The same old way of thinking about money as something you have to always chase and never have enough of.
Money is an awesome thing. It makes life possible and helps you buy great things. But it is always only in a limited supply. Hence, you need to be clear in your mind about what would be the best possible use of this great thing.
Here are some suggestions to get you started on what you should spend on:
- Good, nutritious food
- Gym membership
- Ebooks/DVDs of interest
- All important personal items
Respect Your Money-Making Abilities and Try to Make More
If you are lackadaisical about your job, sort that out. If you are thinking you could do a lot better, find that another job, don’t just think it’s out there somewhere and that you’re so much better than what you’ve got going on right now.
If a business idea has been lurking in your mind, fish it out and see if you can develop it.
The idea here is not to passively work your job for a fixed salary each month but actively maximize your potential to make money. Some can do it by freelancing, some by doing DJ gigs over the weekends. If there’s any way you can do it too, step up and create opportunities.
Find Satisfaction in Things Other than Stuff
(AKA Rising above Consumerism)
See things for what they are. Stuff is just stuff. It has no power over you (unless you think it can make you happy or sad, in which case you are giving your power away to inanimate objects).
A pair of $200 shoes or a tub of ice cream cannot make you happy, nor fulfill you. They are just temporary distractions that leave you a few hundred dollars poorer. Or, in the case of ice-cream, leave you a few pounds heavier. See through the marketing narratives. The world we live in is built for us to separate us from our money. Don’t fall for all of it so easily.
Minimalism is a great way of living. It does not require you to become a hermit or anything, but does require you to ask yourself if you really need the stuff you are planning to buy. Note that the emphasis is on need, not want. Unless you have a great and pressing need for something, give it a pass.
Don’t Follow the Crowd
Just because all your colleagues or friends go to a particular restaurant or spend their weekends a certain way does not mean you have to do the same.
Just because a close friend bought an expensive car and a house of his own does not mean you have to, too.
Just because your best friend only wears Prada these days does not mean you have to break the bank trying to keep up with her.
We all have functional brains but all too often we act with a herd mentality. Call it media manipulation or trying to keep up with the Joneses. The trick is not to do anything mindlessly. Ditch (or minimize the time you spend with) your overspending friends or those who never pay for themselves.
Save/Invest More than Half of What You Make
Invest your money in tax-saving instruments, especially ones that don’t let you withdraw any money for fixed periods of time. The lesser money you will have in your savings account, the lesser you will be able to blow on things you don’t really need.
Create another account and park money in it for emergency situations — like paying for an accident, illness, a family emergency, etc. Destroy its debit card so that you do not use it in the daily course of life.
Shop around for Better Deals
Familiarize yourself with how the retail space works. There are discounts being offered at every turn, make use of them.
One of the best ways to do this is by creating a separate twitter account and following your favorite stores/brands, the supermarket you usually shop at, and all other things that interest you online. Retailers keep coming up with contests, discounts, deals of the day/week, sales, etc. at regular intervals. When you are following them on the social media you will be among the first to know of these offers.
One should also follow their bank on the social media as banks keep offering newer cash back or discount opportunities, something you would never get to know if you were not a part of their social circle.
Adopt the DIY Way
Next time a long weekend comes up, look to create something rather than hit the shopping malls again!
Make jewelry boxes, ipad covers, new pillow cushions, your own non-slippery yoga mat, and storage boxes.
Guys you can be a help around the house and spend your time creating things than merely consuming them. Learn how to fix broken things around the house yourself — plenty of helpful tutorials and YouTube vidoes are available on the Internet.
Grow your own vegetables and herbs. Not only will you save money at the grocery store but also eat fresh and seasonal foods, all-natural produce!
Author Bio:
Lori Wagoner is a marketing and business consultant working with All Car Insurance Companies, which is a realtime online platform for reviews of auto insurance companies, comparison of quotes, and discussion/resources related to the car insurance sector in the U.S. Catch Lori on Twitter @LoriDWagoner.
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Category: Family Finances
