Meager income and large expenditures usually narrow our capability to build a strategic savings plan that could save us from insolvency. No matter how we try to maximize our revenues, we are still on a shortfall. Hence, we need to devise a new strategy that would work effectively on our advantage without compromising the important things we enjoy most.
For me, long-term financial plan is the most practical way to pull ourselves away, or maybe protect, from the depressing clutch of financial crisis. Just imagine how a 10-year fiscal plan could tremendously boost your coffers. You don't have to deprive yourself of life's pleasures but instead, use them to keep financial buoyancy, avoid huge debts and make lucrative investments.
Unfortunately, I cannot create a long-term financial plan for you because I am not aware of your monetary condition. But if you would want to start right away, expect changes in almost all aspects of your everyday life. These money-saving changes will have, I guarantee, long-term positive effects.
- Household Management. Undeniably, the home usually incurs a substantial margin in our expenditures. Cutting down on home expenses is sometimes difficult due to the ever-increasing cost of living, the crescent rates of basic commodities and the growing needs of the family members. Not to forget the obligatory monthly payments like electric and water bills and related stuff. Abating the margin means peremptory measures must be observed. Wise and proper consumption of electricity, water and gas would create a surprising difference in your finances. Avoid wastage on food and ensure that everyone in the family maintains a healthy lifestyle to avoid medical expenses. Consider trying other income-generating projects that can help cover home expenses and save even a little but regularly.
- Lifestyle. Making few little adjustments in your way of life and withdrawing from your pricey habits demand extra effort and time. But once you learn how to adapt to simple living, you will find more reasons to save more. At times, our lifestyle greatly affects and aggravates our financial dilemma. Giving up some of the things that we "get used to" and focusing instead on the things that could augment our finances is rewarding. It's like liberating ourselves from the shackles of extravagance and financial stress. Get rid of those designer clothes, relish home cooking, minimize your shopping, curtail nightly partying, and have more time with your family doing simple but more meaningful activities. Simple pleasures are not expensive. They are usually found in inexpensive little things. With this, you will be able to fatten your savings.
- Wise Spending of Money. Most of the time, people who earn more spend excessively. And they will only realize their mistake when they have nothing to pull out from their wallets but useless little papers, receipts and unpaid bills. And when they have nothing to extract from their wallets, they would have no choice but turn to their savings. Wise spending begins with making a plan. Always think about your financial goal each time you would like to spend on something. Do you really need to make a purchase? How much do you need that? Focus more on the "needs" and set aside those "wants". If you really wanted it, make sure you are not going to spend much for it. And finally, when you buy things make sure it would last for many years. It could save you a lot of money.
- Shopping Habit. Who doesn't love shopping? It is already part of everyone's lifestyle, especially those who have money to spend. If you would want to save money, make adjustment to this habit. Create a list of your basic needs. When you go shopping, don't just buy things because you like how they look or smell. Be practical, compare prices and when it comes to food, always check on nutritional values. And, don't buy things you don't need. Most of the time, we buy things we don't really need, but just because we feel like we need them. Most importantly, keep financial records. This will help you track your expenses and probably find a more effective strategy on how to lessen your expenditures. Then, in a week or a month, see how much you have saved.
- Self-sufficiency. Be resourceful. Find better ways to supplement your income. There are many income-generating schemes or projects you can start and earn even a little but consistently. Consider trying on buy and sell, like clothing, home equipment, and related stuff. Why not venture into online hi-tech gadget and accessories promotion? Hi-tech phones, iPads and other gadgets are in today. You can also add iPad cases, keyboards, bags and many other useful accessories. Or, you can try on supplying basic goods. Learning how to become flexible and self-sufficient can be difficult, but once you started and already earning from it, there is no stopping. Soon, you will build a network and take control of the law of supply and demand.
In today's time of financial difficulties, we need to value every cent we spend. Save while enjoying the things you love most. Knowing the ins and outs of the financial world will help you weather any problem related to money. And when you are doing your stuff, always include your long-term financial goal. In five or ten years, you will reap the outgrowth of your hard work and benefit from your small investments. It is about your lifestyle, you principles and power to achieve your financial goals.
Brandon Peters is an entrepreneur, writer and a travel, gadgets, health, and outdoors enthusiast. He loves sharing his insights, knowledge and experience in different fields.