Money makes the world go round. You might be the most ascetic being to ever walk the earth but you will still need money… at least a little. Margaret Thatcher said: ”The Good Samaritan would not be remembered if all he had were good intentions. He had money too.”
Money becomes a problem when it becomes the centre of your worry, and this usually happens when there are too many expenses to be met by too little money. If you find yourself in such a situation, it might be time to shift gears and go the frugal way.
Frugal living simply means tightening your budget as much as possible. It means accounting for every coin that comes into your hands,.After spending a while in the system, you will manage to have a few spare Pounds to save or invest.
Here are 4 tips to get a hold of the reigns on your wild financial beast.
- Map Out Your Financial Landscape
This is the very first thing you have to do. When settlers would first go to a land they wanted to colonise, they first had to map it out, to know what they are dealing with. You see this in movies. Before laying siege to a building, the assailants first have to have the building’s blueprint.
The same applies to your finances. You want to save? Get to know every detail of your spending. How much goes to electricity, water, the phone bill, fuel, etc. Knowing this will show you where you might be hemorrhaging money and help you seal any holes.
- Never Let a Chance to Save Pass You By
You will have to become the sherlock Holmes of discounted deals. If there is a chance to save, you will sniff it out, find it, and utilize it. Because to you, every coin matters. The problem is that you may overlook some deals because they offer too little gains. That is a mistake. You need to have eyes for the bigger picture. At the end of it all, the tiny savings add up.
- Sometimes Go for Quality
Sometimes, cheap is expensive because cheap things do not last long. So while it may seem as if you are shelling out too much money at first, buying high quality durable things might actually be a way of saving money in the long term. That 40 Pound school shoe for you child might last as long as ten 7 Pound el cheapo ones.
- Avoid Credit
Never enhance your life using credit. Credit is much like postponing your day of flogging, only you get some extra lashes for each day you delay. Sometimes it is necessary to get credit. But using it to get unimportant things is not as smart as it may feel. The interest and processing fees do not serve your frugal goals in any way.
It is a Lifestyle
Frugality is not something you do once or twice. It has to be ingrained in your lifestyle. After a while your purse will start to overflow.