We all want to travel and experience more, but how can we actually DO that?
I want to share with you some of the strategies to save money that I use and I know will make a difference. I am not a financial guru, but I do know life will only change when you become more committed to your dreams than you are to your comfort zone. The first thing you need to understand is that nothing in life comes easy. Even people who want to travel need to set goals and work towards them. You will need to sacrifice your current lifestyle and way of living if you’re serious about shaking things up.
These tips on saving money will work for any financial goal you have in mind. If you’re saving for a house deposit or saving for a new car, the principles are the same.
BE CLEAR ABOUT YOUR GOAL.
You need to define exactly what you want to achieve. Have a solid timeframe in mind. It helps you to stay focused on your end game. A shorter time frame demands more drastic changes to your lifestyle.
CULL YOUR VICES.
We all have them. Your weakness could be coffee, beer, wine, smokes, shoes, eating takeaway or collecting DVDs. You don’t need to ditch your vice(s) completely, but it does help if you do. If you still a need a beer (like Adam) switch to a less expensive brand. If you must eat out, purchase one of the least expensive dishes on the menu.
EARN MORE MONEY.
An achievable way to earn more money, is to simply work more hours. If your job allows you to work more and you get paid more, then just do it. On the other hand if you are on a set salary regardless of how many hours you work, your option could be to get a second job.
GET SERIOUS.
Any extra money you are earning or saving, you should place it into a separate bank account. Then DON’T TOUCH IT.
EMBRACE MINIMALISM.
If you are planning the big lap, this one is for you. You will come to realise you don’t actually need a lot of stuff to be happy. In the lead up to your epic lap, begin selling, donating, giving to friends and family anything deemed non essential.
BUST YOUR BAD DEBT.
Credit Cards.
Let’s start with credit cards. If you are paying interest on your card purchases, you are being played by the banks. It is in their best interest for you to stay in debt. The only acceptable way to possess a credit card is if it has an interest free period and you actually pay it off before the end of the free period. If you can’t, you are spending more than you can afford. Be real about your situation. Look at the stuff you’re buying and reassess how important it is to have. Credit cards are a great tool if you use them in your favour. Some accommodation places insist on you having a credit card just to make a booking. In this case, you could have a Debit MasterCard or Debit Visa and use your own money.
Any extra money you can save is almost pointless if you have a credit card debt to repay. Pay the debt off as first priority. Cut the card up and throw it out if you know you can not control your impulses. Stay focussed on your goals.
Car Loans.
A typical car loan is repayable over 60 months. That’s five years of your life being chewed up by paying off your car. Investigate your loan type and find out if you are able to make extra repayments or lump sum payments. A car is an asset that depreciates over time. This makes it a bad debt as your loan amount can very easily be more than what your car is worth.
BIG CHANGES FOR BIG IMPACT.
Move to a cheaper house and pay less rent.
Move in with family or friends and share the household expenses.
Sell your car for a cheaper model or use public transport.
Don’t give up. You might be thrown a curve ball as life doesn’t always go to plan. You might get really sick or injured but once you are well again, keep going! Use your bumps in the road to remind you of where you want to be.
