Over the years, we have heard that the solution to most financial crises is to earn more money, either by working more hours, starting a side hustle, getting an entirely new job, or getting a raise in the form of a promotion. While this may be an aspect of providing a solution to finance-related problems, hence promoting stability, it might not be the entire solution needed in all situations.
Introduction
Considering the need to identify what is taking up our income even within what we currently earn might be all the solution we need in the interim, which, in the long run, could bring about a significant change or positive overturn in our finances and overall lifestyle. Moreover, getting a new job or working longer hours will usually have an alternative forgone, which could be as simple as sacrificing quality time with family and friends. Hence, there is a need to be self-aware and look out for areas in which we could cut down on our spending, which in the long run could result in more savings and a financially stable home for all to live in.
Table of Contents
Money- encourage savings and eliminate wastage
The below represents areas where one can look to get one or two additional funds in the home from already existing sources without necessarily getting a new job or more funds from outside.
Car Expenses:
Owning a car today is not a luxury but a necessity. It ensures that the home can run errands and enhances mobility. An average home is expected to have at least one car to make life easier and more convenient. In my house, for example, we will need to do some school runs and work runs daily, and oftentimes, during the weekend, we will do some grocery runs, church runs, and outings every other weekend.
As much as having a car is considered a priority, getting a small car that can serve this purpose is all the family currently needs. Rather than racing for luxury and more new vehicles, which we sometimes collect on finance at a ridiculous interest rate, this will help save some biweekly dollars and unending interest rate payments.
Although some individuals have argued that new cars save you from spending money on maintenance and also save you some headaches on regular visits to the mechanic, there is a need to maintain a balance by buying a car that is not entirely old but, at the same time, not completely new.
Looking into the cost of car financing, buying an already used car could bring about over 10 to 20 percent savings in the long run, hence minimizing wastage and ensuring that there is more money available for savings or other things in the home.
Suppose one has already bought this new luxury car. In that case, I advise that one looks into paying up earlier by putting in more money towards the cost of the vehicle and not interest or consider the option of refinancing after one or two years of payment, which could help reduce the interest payable on the car.
Clothes, Shoes, and other personal beauty items and accessories:
Looking good is a good business, for sure, but overspending or going beyond one’s means might cause financial problems in the home. While everyone loves luxury and will love to wear the world’s top brands, one should consider whether one genuinely needs to purchase these items before buying.
I am not saying that you should forgo looking good altogether, but one could consider buying one expensive thing and using it for years or buying cheaper things and using it for just a bit; the decision is ours to make. Additionally, it is critical to know that fashion trends will continue to change, and new styles and designs will continue to exist; hence, it might be unreasonable to keep moving with the trend but rather advisable to create your own brand and buy things that make you comfortable and secured thus saving you lots of money in both the short and the long run.
You could also consider depriving yourself of some of these things in the short run just to have extra cash and funds at your disposal. I saw a skit once that kept me thinking: Why do some people have fifty to hundred perfume bottles at a time? I consider this a show of luxury or trend rather than a buy of need.
Therefore, examining our closet space could help us save lots of money and stay on budget, buying only the necessities rather than chasing fashion trends and styles at the expense of our pockets.
Spending on Phones and other Related Gadgets:
Using a phone is necessary today. However, we can still figure out how to reduce our monthly phone bill. There are usually two costs associated with using a phone, which include the cost of the phone and the monthly service charges.
To reduce the cost associated with this, one could consider using a particular phone for more than a year, not minding the introduction of new versions and brands to manage one’s cost. Explore leasing a phone if you are a fan of yearly phone changes, which are relatively cheaper than outright purchases. It is also essential to occasionally check out deals from various service providers to help reduce your monthly phone bills.
Monthly Movie and Music Subscriptions:
Although monthly movie and music subscriptions may seem like a minor expense, they still make up part of our monthly spending. Because they seem so small, we sometimes lose track and end up having a lot of subscriptions without even utilizing the benefits. I once subscribed to YouTube Premium, Netflix, and even Amazon Prime without watching anything for a defined period. This also applies to music, which oftentimes amounts to a reasonable chunk of our bills.
To save money, I suggest alternating between these subscriptions, having one at a time rather than having several simultaneously without even using them. This would allow for more savings or available funds for other necessary expenses.
Grocery Purchase:
After rent, groceries represent the most significant cost most homes spend on. I am not saying that spending money on food items and other things is not essential, as we all need to maintain a healthy lifestyle, be satisfied, and remain constantly happy while at it.
We will need to consider writing down our shopping list and constantly reviewing it to confirm that we truly need what we are buying. This will ensure that we only spend on the necessities and not just buy to stock the house without utilizing them.
Also, we can consider taking occasional grocery holidays. During this break, we get to use all that we have purchased previously, saving us more money and eliminating wastage.
Vacations:
Vacation is a getaway. It involves taking time off from work and regular activities to re-energize, see, and appreciate the beautiful things in life. Maintaining a budget and having a proper plan for this would also help save some dollars.
One should consider closer locations and not necessarily go all out to maintain a standard that we have yet to attain, ensuring that we stay out of debt and enjoy our current state, life, and moment.
Impulse Buying:
We sometimes spend money randomly without proper planning or budget. This can often be on anything. For example, while taking a stroll on the street, you smell barbecue and suddenly decide to buy, or you go window shopping at the mall and suddenly find a shoe that you can’t imagine living without.
Putting a budget for impulses every month would help solve this problem while maintaining a habit of self-discipline to stay true to your budget will ensure that we are not wasteful and, at the same time, have more money to do other things at present or in the future.
Conclusion
At some point in our lives, we experience unending expenses with little or no additional income to meet these demands. It is, therefore, important that we occasionally carry out an evaluation to identify areas for cutting down, which will help us stay afloat on our expenses and also help us have some extra savings for the possible future.
We can start by reducing our grocery list, opting for a fairly new or old car instead of an entirely brand-new one, learning to use our electronic gadgets and phones for over a year, and avoiding unplanned purchases. By engaging in these activities, we will eventually eliminate waste and save more money for our homes.
References
10 Money Management Tips for Financial Growth – Bravuralope.com