Financial independence is every working individual’s dream. We plan for it, we save for it and we work hard for it. However it always seems to be just a few steps ahead.
Spend less save more
Spend less and save more. The more savings you have the more you can invest. Most basics are enough to live comfortably. Indulgences result in excess and excess of anything is harmful. Spend on requirements. Do’nt make purchases that are based on a feel good factor or are ego driven.
Be self contained
Work on limiting all that you pick up from external sources. A few simple ways like starting a small garden (yes container gardening) , tapping into natural energy sources etc make you more self contained. Just spending on a handful of seeds gives you fresh wholesome vegetables. It reduces the trips to the supermarket and fattens the wallet. Adding solar panels can reduce the amount of electricity. Good for the environment and good for the wallet.
Hobbies are great as they give us the space and the mindset to let go and just be. See where your hobby sources the products from. If you love to read then cut on the book buying. Take the membership of a library. Less purchased books will result in less clutter and more savings for more investments. If you like to watch movies then look for movie rental options. Membership options provide access to a movie library as well as other benefits. Avail offers on these.
To save eliminate old debt. Start fresh. For old debt look for options like debt agreements or debt consolidation. A Debt Agreement involves negotiating with the people that you owe money to. These negotiations lead to an agreement which then becomes legally binding. This agreement can involve a number of measures including periodic payments, paying less than you owe, a moratorium, a transfer of property in full or part payment.
Debt consolidation entails the taking out of a single loan to pay off many other loans. This is often done to secure a lower interest rate, or for the convenience of servicing only one loan rather than many. There are a number of companies like www.debtconsolidation.com.au that will help you with this.
Live a healthier life
Streamline what you eat. If you start skipping processed food and stick to a diet of mostly fruits and vegetables you nolt only do a favor for your wallet as well as your body. Eat well within limits. Your brain will function better and body will feel fitter. Add abit of exercise and you have a routine of a lifetime. Excerise daily. Eat well daily. Consistent action brings results. The less you indulge in unhealthy food the more distance there is between you and medications.
Practice what you preach. So before you set off on a money saving scheme with kids make sure they see you do the same things. Children watch and learn and what they pick up is what they see. They are the best reminders to you to see how you live your life.
Explain : Start by ensuring that the child has a paycheck via the spending money you give them. The spending money is their paycheck. Sit down with them and work out a list of things that can be purchased with the money. They need to understand that treats are accounted for with the allowance that is given to them. Make sure they understand what they can do and what they cannot do with the allowance. Do not constantly give into temptation of giving them constant treats. Not only will it upset your budget, it will teach them nothing about saving. Keep your spending to the occasional splurge. Explain to them that once the allowance finishes, it finishes. There is no additional spending money. Sudden spending needs to be catered to. They will learn to carry over their allowance for the full week or month – as you set it. In due course they will understand the value of putting a little aside for those momentary splurges.
Demonstrate : Show them how accounts are balanced. Once a kid sees the process he will be excited. Create a dummy bank account in the house. Get your child to put the money in a box and then lock it. Link a register to the account. Let them enter what they put in the account and what they take out. They will learn to balance the account and understand how the money is being used. Show them that when money is taken out to make a purchase it reduces in the account. The only way to increase money to buy something big is to add to the account. Children learn the basics of accounting this way. They also understand the importance of saving just a little bit. They also learn to not spend all the money on eating and drinking. Demonstrate to your child the importance of a healthy bank balance and you will have a teenager with a healthy body and healthy mind. Act Act on what you teach. If you yourself are overwhelmed with debts you will not be a good teacher.
Act now and get in touch with a financial expert. If juggling emi’s is taking up a chunk of you days and playing havoc with your peace of mind then call a debt consolidation expert and let them take care of the juggling. Sit with a consultant and work out a plan to consolidate all the debts into one single emi or opt for a debt agreement. This will clear up a lot of stress and leave you with more freedom to start your own savings plan. Once you know the amount you are leftover with, start your own savings plan with your child. Act now and move towards financial freedom.