Monday, 4 June 2018

Five little changes for better finances


Let’s get this out of the way - Money isn’t everything. However, like water, its mismanagement can hurt us quite severely. Here are five tiny little changes you can make in your daily life that can lead to better management of your finances and hopefully a slightly comfier life -


1How you look at deals

How we all love a good deal! When you spot a lovely dress which you suddenly feel you can’t live without AND which, thanks to your guarding angel, is selling at a 20% discount – Take a moment. 
Breathe.
And then - don’t look at it as a 20% saving but as an 80% spending (because you still have to pay that 80%). This shift might save you from spending on things you don’t really need anyway.
PS – And deep down we all know that discounts are just a lie to trick us into feeling better about our guilty purchases.

2. Beware of credit cards

Cash, debit card, chequing account and savings account – This is money.
Credit card – This makes you think you have money.
Remember this small but massive difference which can change how much you swipe and spend.



3The idea of fun

Having fun and/or meeting friends doesn’t always have to be in some restaurant or bar where you end up spending more than you should. Going on a walk, meeting in a park/museum, playing an inexpensive sport is not only lighter on the wallet but also more likely to be a more enjoyable experience.

4. Embrace a little bit of minimalism

How about moving a little away from consumption and a bit towards minimalism? If you donate what you haven’t worn or even touched in the last 100 days, you’ll realize you probably don’t need some of those clothes and shoes anymore. 
And that's a double thumbs up from YourSustainableAccountant.


5. Try the FIRE (Financially Independent and Retiring Early) lifestyle

This is a long-term plan that requires small short-term changes in thinking. It is a way of daily living where you spend less because you want less (without sacrificing happiness) and hence you have to work less. 
Not bad, eh?



References - 
1. Image credit for Financial Freedom Next Exit - 5 steps to becoming financially independent before age 25. (2017, April 01). Retrieved from https://www.ways4money.com/5-steps-becoming-financially-independent-age-25/
2. R/financialindependence. (n.d.). Retrieved from https://www.reddit.com/r/financialindependence/

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