Live within your means to save money

Everybody wants to enjoy financial independence and lead a successful life. However, with so many financial advisers around, we are often flooded with snippets of advice that sometimes make it difficult to choose the best way to go.

Different people have followed varied routes towards financial independence. Perhaps you have also tried some of these methods. Some worked and others did not, but this might be the best time to try living a simple life in order to regain control of your finances.

Many of those who have had a breakthrough in controlling their finances opted for a simpler approach to life. They chose a minimalist life by scaling down everything to ensure that they have something to save.

Hilary Mambo, a financial adviser, says by slimming everything down, you are setting off on a journey that will make your life more focused on achieving the good things in life. This way, you will not be wasteful, as you will go only for what matters to you.

“To start, you must look at where your money currently goes. Ask yourself what you can do without or what you can scale down. However, you should not compromise the things you need for survival,” advises Mambo.

“Look at how much you are spending on servicing debts. What can you do to ensure that you clear most of your debts and avoid the hardships you have to endure to pay your creditors? What are the priority debts you should endeavour to clear?”

“If you want to slim down your lifestyle, you must tame your bills. How much are you spending on water, electricity and telephone bills? What can you do to bring down the expenditure? Are there alternative methods to sources of power, for example?”

Some of the ways to cut down your bills include ensuring that all the lights are turned off when they are not needed. Instead, keep curtains and blinds open and use solar power to heat water and light up.

Mambo advises, “Look for innovative ways to reduce transport costs. Give your car a rest and walk or cycle to work. This way, you can save substantial amounts of money and keep fit in the process.”

Creating a routine car pool where you can share fuel and maintenance costs with a neighbour or friends is another way to cut costs.

“How much do you spend on lunch? You might think it doesn’t amount to much but when you compute the total per month, you may discover it is quite a lot. This may be the time to carry lunch to work to avoid the costly, probably not-very-healthy meal you buy every day,” advises Mambo.

Preserving leftovers is another big income saver.

“If well preserved, food can be reused and help you save money. In some cases, you can cut down costs by sharing dinner with a friend,” says Mambo.

He further advises, “Sort through things in your house and determine what you should give away, sell or recycle. If you have not worn a certain dress or suit in the last three months and it is not for special occasions, then it may be time to put it in a big bag and give it away.”

By clearing the clutter, you can relieve space that could be costing you now. In some cases, you can make money by disposing of things you do not need.

“Take time and evaluate the people you spend time with. Do they add any value to your life? If not, do away with them,” says Mambo.

“Create a budget to guide your spending to help you avoid impulse purchases.”