Although your little decisions added up to this, allow me to refuse to judge you or condemn you.
You are a wealthy person who just took a detour.
The good thing is, if you can still imagine a future then you can imagine a good one. So together, let’s imagine that at some point you’ll struggle a lot less with money.
Now, how do we get there? A decision at the time. Starting with this:
1. Go On A Spending Diet
Make a list of the things you want or just like. For 66 days, spend exactly zero dollars on them.
If that sounds too harsh, set aside a sum that you’ll use towards all these things combined, for exactly 66 days. Whether it’s $90, $250 or anything else, stick to it and do not spend a dollar more.
One major thing will happen:
You’ll be left with more cash on hands because your usual splurging dollars will have nowhere else to go. Put them in your savings or use them towards your repayments. It’s a simple concept with huge rewards.
By the way, here’s my own list of wants! I’ll be spending (fingers crossed) $200 on them for 66 days.
- A replacement barbecue gas bottle
- Hair cuts from THE ONE and only Bo (getting better at doing it myself. Already saved hundreds of $ by doing my own cuts!)
- Fresh flowers for Tash (Been learning how to make origami ones instead)
- New Amazon books (I’ll have to finish the one I have for real this time)
- Eating out (This is a manna-from-heaven type miracle)
- Food truck visits (Not too sure yet. Putting it here for motivation)
- Drive-in Cinema nights ( Hurts the most because wify and I really enjoy this. But it’s only for a while. Plus, she’s so supportive.)
PS: To read from the godmother of this concept, follow this link.
2. Squeeze Your Needs List
Make a list of your needs. Look at them again. If you’re honest with yourself, you’ll agree that there’s still something on that list without which your life won’t fall apart. Cross that thing out.
For every remaining item, find a way to do more with less money.
3. Hope For The Best, Prepare For The Worst
Insure anything that would potentially wipe you out if the worst were to happen. Tash and I had a car accident that took our savings to zero and from which we are still recovering financially. Insure your cars and every similar item. You’ll be better off safe than sorry.
4. Establish A Saving Routine
Save 10% of every dollar you receive. And if 10% is too steep, go with 5%, as long you save something from EVERY dollar.
5. Consolidate Your Service Accounts
Switch to family accounts for every service you both use. For example, don’t pay $24 for two Spotify accounts when you can pay less for a family account. Or, don’t pay for 2 mobile data plans when you can pool the data from one account.
Make a list of the services you use, check which ones offer family accounts and switch.
6. Let The Company Pay For It
Get a free entertainment book, coupon book or any discount package offered by your employer. Don’t pay for things that have already been paid for you.
This is by no means the complete list of things you can do. But if you can start with this, the rest will be easier.
Happy financial future.