No matter how much we earn, there is never enough money to go around. You may have observed this in your own life, but there does not seem to be more money saved as a result of increased wages. Invariably all that happens is that we adjust our spending up as our income increases.
Anything in life worth getting does take some effort. Wanting to save more, means needing to sacrifice something or a number of things that you spend money on today.
Spending money can be lots of fun. It does not matter if you shop online or in your local shopping center, one of the more significant behavioral changes you need to implement is to stop shopping for entertainment. We all do it. A rainy winters day. There is nothing to do at home. Why not go shopping. Instead of shopping you can go for a walk. In poorer weather you can visit friends or get those domestic chores done that you have been putting off. You do not need to go cold turkey – simply decide that you can spend no more than a set amount a months on discretionary purchases and stick to it.
This is a major source of financial drain. If you are looking to save some money reducing going out to once a month instead of every week should net significant savings.
Giving up the smokes is going to do more than simply save you money – it is also going to save your health and medical bills into the future. Of course smoking is extremely addictive but giving up can yield significant savings.
Unarguably your health is very important. However it is possible to exercise of a daily basis without paying a weekly or a monthly fee. You can exercise outdoors or buy a machines for home. However for best results, go to a local park and exercise in the fresh air. You can ride a bike, jog, do situps etc. Our local parks are full of personal trainers taking clients for exercise there. Why not take yourself to a park and save money as well.
Stop using credit cards. These make it very easy to spend money beyond budgeted amounts. You do not feel like you are spending. Moving to debit cards will prevent accumulation of unnecessary interest costs as well as spending of money that you do not have.
Those of you with a variable mortgage need to look into using an offset account. Any income earned during the month can be offsetting the cost of your mortgage and thereby reducing your home loan interest expense.