6 Steps to help you live within your means
These tips aren’t easy to adhere to and they require willpower. Many people want a quick-fix to their financial problems. There is no such thing. Spend less than what you earn – it’s the only way you’ll ever become debt-free.
Step 1: Stop reading magazines and ditch going ‘window shopping’
Read things that teach you something or inspire you. Stop reading magazines that tell you to buy things you do not need. Go for a walk in the park or the countryside or for a run instead of the shops. The UK has some glorious scenery and it’s free. Make the most of it. ‘Window shopping’ invariably ends up in making a purchase. Or visit friends and go for a coffee or better still, have a coffee and a catch up in your home. You don’t need 3-hour stints at a shopping centre on the weekend. Spend time with your family and friends instead.
Step 2: Use items until they need to be replaced
Please congratulate yourself if you have resisted buying a new laptop or mobile phone. Your 2-year-old item may not have all the latest functions but there’s no need to get a new one just yet. Same goes for your car. Why do you want to enrich someone else every 3 or 4 years when you can drive the same car for 10 years? Unless your car is falling apart and costing more to repair it than to get a new one – make do. Get the most out an item before you feel compelled to buy a new one.
Step 3: Try to live on only 60% of your net income
This is the debatably the most difficult item on the list. It’ll be difficult to do for the first few months but you’ll soon forget about the 40% you’re not using. You’ll find ways to make your money last longer. Use the 40% to pay off debts first. Any money that remains after paying debt could go into a savings account or you could put it into your mortgage.
Step 4: Use the library
You can get books, music and magazines for free. Try to buy only those books and CDs that you would read and listen to over and over again. Some libraries have internet that is free to the public. Use it; your tax money supports libraries. Or if you have an ipod (this is not an instruction to go out and buy one!) you’ll find lots of podcasts and tracks which are free.
Step 5: Resist buying branded items where possible
This won’t always be possible. And sometimes the branded item is not much more expensive than the generic one. But try to resist buying branded items; these items aren’t always of better quality. You’ll only be giving the brand advertising revenue that no-one is paying you for.
Step 6: Do things yourself
Wash your own laundry, make your own gifts, clean your own house, sew your own clothes, make your own soup, bake your own bread, and cook meals you can freeze. You won’t gain in time: these activities take time. But you will be able to lose yourself in the ritual of baking or cooking. You could even make it a weekly family event. This would teach your children skills and attitudes that will benefit them 20 or 30 years from now.
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