Wasting money has become the bane of this society. The waste of money has become so prolific that record personal debts are seeing millions thrown into chronic debt with no hope of escape. But how can those who live within this society combat this crippling financial stranglehold? The answer to this is simple, cut out the waste of money by spending sensibly.
Purchase only, those things that you ‘need’, rather than the things you ‘want’. By wanting the things you see within catalogues or on the shelves within the stores, you will be falling deeper into debt. By purchasing the things you need, you will begin to save money in the long run. So, with that being said, cut out the waste of money straight away.
Turn off all lights within rooms that are not occupied. Turn off computers and games consoles televisions and radios, in fact everything that is not being used that is wasting electricity. Close all windows in the winter, as open windows contribute to a loss of heat within your home, thereby a loss of energy – which costs you money. Invest in good double-glazing, therefore cutting down the cost of your heating bills in the future.
Make sure there are no dripping taps, as dripping taps can see your water bills shoot up over a period of time. Invest in an energy meter, which will record how much energy you are using within your home. Not only that, but an energy meter can also show you, in monetary terms, just how much electricity/water/gas you have used in a day, week, month or year.
Of course this, in turn, will help you gauge your energy usage within your home, thereby saving you money in the long run. Get rid of any excess credit cards you may have, and stick to only one. By doing this, it will cut down on your credit card bills. Preferably, if you have to use a card, try and use a debit card rather than a credit card. With a debit card, it is you who are in control of your money at all times, as you will control just how much you put on your card – the ‘limit’.
The main difference between the two cards is that with a credit card the credit limit is set by your bank or financial provider – depending on how good your credit score is. However, with a debit card, the limit upon the card is set by how much you yourself put on it. So therefore, with a debit card, you are always in control of your finances at all times.
The other difference between the two, is that with a credit card there is APR to pay [which is the Annual Percentage Rate]. The APR kicks in as soon as you are late in paying your credit card bill. Lateness in paying your credit card, can also have a domino affect on your credit score. Having a bad credit score can have an adverse affect your ability to apply for credit in the future.
So owning a credit card is not all that it seems to be. Of course, with a debit card, there is no APR to pay, and so you are more in control of your money than you would be if you owned a credit card. Straight away one can see the advantages of owning a debit card as, in the long run, you would save money because you control your credit limit. With no APR to pay, you are not penalised because of late payments on any purchases you make due to the APR. This is because your debit card limit is decided and charged by you and you alone.
There is no upper limit to the amount you can place upon your debit card, but of course, once your money runs out, you will not be able to use your debit card again – until you charge it once more with funds. This can be done straight from your bank account, or by taking it to a store. The storekeeper will charge your card with the relevant funds, once you have paid for it.
Hand over the relevant amount of money and the storekeeper will charge your card for you, up to the amount you want, as explained above It is as simple as that. Owning a debit card can help you to stop wasting money simply because there is no APR charges that are placed upon debit cards – as there would be with credit cards.
Open another bank account. The first one could be used to pay your bills, the second one will be for any residual income, or savings you make. Throw any spare change you have into your second bank and do not touch this money unless you really have to purchase what you need.
This will get you into the habit of saving. It is about training your mind into thinking in a completely different way to your money and savings that you would have otherwise done. Within stores, learn how to bargain. By learning how to bargain for items in shops and markets, you can make big savings in the long run. This is not illegal and many shopkeepers and market stall holders will expect this.
There are savings to be made with owning an energy meter, a pushbike and good double glazing. By owning a pushbike you will cut out, completely, fuel costs, motor insurance, road tax, and parking fines. These will now not be an issue, and the money you will save will be substantial. As to cars, If you own two cars, consider cutting down to one.
If your car is big consider exchanging it for a smaller vehicle, therefore lowering fuel costs. Or better still, if you purchase a pushbike, as stated above, then the issue of fuel costs, motor insurance, road tax and car parking fines, will never arise. Plus, the benefits to your health will be substantial.
Consider growing your own food instead of purchasing it. In the long run, you will save money. Get into the habit of saving for what you need, instead of what you want. Saving is all about rethinking, or rewiring your brain into thinking in a whole new way, when it comes to saving money.
The top brands are not always the best. Consider purchasing the same items, that do the same job that the top brands do, for less price. Be frugal, be thrifty, but never deny yourself the odd treat when you deserve it. By doing those things as mentioned above, you will have more money in your pocket to spend on just what you want at the end of the year.
It is all about a sea-change in the way you think about your finances, and how you spend/save your money. And, it is about re-wiring your mind into thinking in a completely different way to the way you approach, and think about your money in the future.