Learn how to save more and spend money in the more important areas of life. It is time you start to plan more effectively and learn how to motivate yourself to save. You’ll also be surprised by the amount of money we spend on things we don’t necessarily need. Read part one of ‘How to spend less, save more and reap the benefits’.
1. Set your sights on a goal
It’s often easier to save money when you are working towards something. Our biggest failure is setting a target without us having anything to incentivise ourselves to achieve it. Why will I save €200 a month? What do I gain from it? It is often difficult to stay determined when you are hit with thousands of advertisements from brands and people encouraging you to buy their wondrous products. Focus on something that will inspire you to save.
Take Mark and Emma for example. Mark and Emma decide they want to become home owners. New mortgagees are now required to have between 10% – 20% deposit set aside as a down payment. They need about €40,000 for a down payment, so they devise a plan to make it happen. Each is tasked with saving about €1,000 a month (or half their wage) for nearly two years. It may be difficult, but they want this and when you want something, you’ll make it happen.
2. Take a hard look at monthly expenses
As financial advisors, we like to go beyond the usual services provided. It is amazing the amount of times one of us have sat down with a client and took a hard long look at recurring monthly expenses you can cut out. Set aside some time at the end of every month and comb through your bills. You’ll be surprised with what you will find. People have spent hundreds if not thousands on unnecessary subscriptions and daily costs. Do you have a subscription to Sky, but also have Netflix? Do you buy your lunch or make it? Rate things by use and enjoyment, but be ruthless. If you only watch Netflix, why have all the television channels? Also take the opportunity to negotiate bills for your TV, internet and phone providers.
3. Take your DIY game to the next level
Has anyone seen Zoolander 2? For those unfortunate to have witness this travesty of a movie, there was one humorous moment when Benedict Cumberbatch plays androgynous model called ‘All‘ in the movie. It’s time you learn by example and become your own chef, handyman, barber and car washer. Become ‘All‘. Besides the benefits of saving money, you will learn how to expand your skill set and apply them to other areas in life. Don’t know how to cook? Consult the internet. Everything you need to know about how to do something is available online. You never know, you might discover a new hobby or a pastime!