FINANCIAL SUCCESS demands changing the way you used to do things by practically implementing new methods that are beneficial to your wellbeing, according to Fin24 user Noel Makhubele.
Firstly, he recommends that monthly transport expenses be reduced by all means.
Payments towards transport costs can never be recovered, for instance car payments, car insurance and bus and taxi fares, according to Makhubele.
"This fact supports the principle that a vehicle is a depreciating asset," he said.
Secondly, he suggests having a visual aid for expenses.
"Have a visual view of your monthly expenses and apply a limit or cap. Develop a spreadsheet showing all expenses and make sure you reduce the limit on an on-going bases or at least maintain the limit," he said.
Thirdly, he says one should find ways to increase your income.
"Do extra jobs, sell items or invest in something that generates a monthly income to offset the expenses," he suggests.
"Be obsessed with increasing your income to a point where you make this your monthly way of life. Monitor the increase and never stop the cycle. Save more and plough back the savings into increasing the monthly income."
To achieve the above requires serious discipline, focus and commitment in his view.
He further offers his personal tips for saving money:
- Drink water instead of juice or fizzy drink after meals - remember water is healthy and free;
- Reduce food consumption and start buying healthy food like vegetables and chicken;
- Think before you act - assess the benefits or disadvantages of your actions before you act;
- Be bold in your resolve to deal with your finances so that you can overcome resistance from going back to your old ways and criticism from friends and family.
Another Fin24 user, Pieter Buys, suggests that consumers save when they actually do have money and not when they don't.
"As Warren Buffet says: You need to have money when no one else does," commented Buys.
"I live far within my means and invest the rest...That is the only way to get ahead in life."
He drives a 13 year old bakkie and a nine year old Diahatsu.
"I do love fancy cars like any guy does, but a comfortable life is worth far more to me than a fancy car and what people 'think' of me," he says.
"Even clothing can become horrendously expensive for those who like to swagger and show they have more than they have."
That is why he is happy with a T-shirt and jeans and doesn't need "the world's approval".
- Fin24
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