Managing finances can be a huge burden and often causes a lot of stress and anxiety. There are ways to make it easier though, and here is just a tiny sample of examples of how to achieve this.
Downsize Your Debts
Start by clearing as many debts as possible. Target one till it is cleared and then that spare money can be used to target the next. It is no fun when out of every paycheck a huge lump of cash disappears to credit card companies, for instance, so work at getting rid of them all.
Check through your bank account and see what you are being charged for and try to reduce using them. You may even come across some old subscription that you no longer use that you can cancel.
Banks are very good and do not normally make mistakes, but while going through your account, make sure that every payment showing was made by you.
Downsize Your Living Accommodation
This is one way to release some of the equity in your home and reduce your monthly mortgage payments. The value of homes increases every year, while the balance on your mortgage is coming down. As the gap widens, so you have more money sitting in bricks and mortar.
It is for the very reason that trailers and custom modular homes have become so popular in recent years. They can be custom built to suit you and your family, but most of the work is carried out in a controlled, high-quality factory environment and then delivered to your site.
When you buy a modular home, you get great looks and features at a fraction of the cost of a home built on site.
Downsize Your Activities
Look at which of your social activities costs you the most money and see if there is any way you can cut the expense of your favourite hobby. This can be much easier than you may think. If you meet up with friends for a meal a couple of times a week, suggest eating at a cheaper restaurant, or that you all take it in turns to cook in your own homes. You might be surprised to find that your friends welcome this cheaper option as well.
If your hobby involves paying fees every time you do it, cut down on the number of times a month that you take part. This might seem a bit harsh when you work hard and this is your relaxation time, but if your finances are tight the money you are spending will cause you more stress than cutting out a couple of sessions at the gym, for instance, each month. There are plenty of free alternatives that can fill up any holes you have in your schedule.
Downsize Your Food Bill
Food is one of the biggest expenses in any household, but it can be cut back quite easily. Watch out for the special offers, but don’t fall into the trap of buying something just because it is reduced if it has a use by date and is likely to be thrown away.
Buy larger packets when you can, because kg for kg that works out cheaper. Reduce the amount of meat in your diet. Meat is one of the most expensive items and you will see your food bill plummet if you are buying less of it. There are very tasty meals you can make that do not include meat, and very often they are healthier.
Buy the supermarkets own brand. These products, that are sometimes as much as half the cost of the branded ones, are usually made by the same people that manufacture the top names on the supermarket shelves.
Do you have any financial downsizing tips of your own to share?