Despite the surging cost of living and the inability of so many people to make it to the end of the month with cash left to spend, there is very little thought that goes into ways of cutting costs. Instead people tend to complain about how badly they are paid or how horribly exploited they are by the system. While these gripes may well be well founded they are also easy solutions and ones that will never really bear any fruit. Because if you have a problem the best way to solve it is with a solution and the solution is something that you need to work out for yourself. Here are some tips to get you on the right track.
Never be satisfied
Cutting costs is an on-going affair and you should never be satisfied with what you are paying. Always ask questions, seek discounts and try to find a better deal. There is an old adage in sport that says, “If you want to be the best you have to train harder than the team in second.” The same applies to your spending life. If you already have a deal offering the cheapest electricity Sydney has available, then find a way to make it cheaper. Negotiate. Haggle. Look for an angle, because there will be one, but you will only spot it if you are looking.
If you don’t know where you money goes, and many people don’t, then try to track it. Make a note of everything that you spend and then, at the end of the month, or even at the end of the week, you can reconcile your expenses. You will probably be amazed at where it has all gone. The truth is that we spend a lot on things that we never intended to spend on. Convenience purchases and spur of the moment items. Or things that we feel we absolutely cannot do without. The problem is that if you don’t stick to a budget and spend with a plan, then you will end up broke long before the end of the month.
It might seem obvious but if your savings plan is to take whatever you haven’t spent by the end of the month and stash it away for a rainy day, then you are on a hiding to nothing. As soon as you are paid you need to decide what you intend to spend and what you want to save. Squirrel the saving money away at the start of the month and make sure it is somewhere untouchable. If it’s not it will be spent very quickly and if and when that rainy day arrives you will be in big trouble.
Live debt free
So many people struggle to make it to the end of the month because of all the credit card repayments they are making. Avoid getting into debt, it is a terrible situation to be in. Take a mortgage if you intend to buy a house, but aside from that save hard and spend money that you actually have. That way you will avoid getting into a vicious debt cycle and without having to make back lots of payments on a monthly basis you will find it a whole lot easier making it to the end of the month.