Dear friends,
Have you ever felt that your spending is out of control?
That you are sailing too close to the wind?
Maybe finding yourself having to cut back drastically as you approach the end of the month and your next payday.
You experience a feast at the beginning of the month and a famine at the end.
This oscillation can give rise to needless stress and worry.
Life can be made much simpler and more comfortable if you can manage to bring your spending under control.
You know too that you should be setting aside money to prepare for unexpected expenses.
All this requires a more mindful approach to your spending.
You will likely have regular costs and expenses that you cannot avoid.
But there are steps that you can take to cut back on your optional spending.
For a start,
You should keep a diary of expenses.
For at least a month,
During which time you'll keep a careful note of all your outgoings.
This can be quite a mind-opening exercise,
Because we tend to underestimate what we spend day to day.
By examining your notes,
You'll see if you've been falling into the habit of impulse buying.
Especially when it's so easy and painless at the time to pay by card.
Painless at the time,
But the bill will come in at the end of the month.
If impulse buying has become a habit that is causing you concern,
You might find it beneficial not to carry your credit card with you.
Leave the card at home and leave the temptation to spend at home.
Another strategy could be to postpone the purchase for a day or for a week,
By which time you can more calmly consider,
Do you really need to buy this?
If you've ever been late with a credit card payment,
You'll be only too well aware of the interest that's charged on carried forward balances.
If you do use a credit card,
It's essential that you work to bring about a situation where you can clear the balance each month.
Credit card interest is money down the drain,
And you'll be charged even more if you miss the minimum payment on time.
It is also worthwhile to examine what you are paying for subscriptions.
What services have you signed up for?
Do you really need these services?
When you stop to examine the situation,
You may find that you're paying for some services that you don't use at all,
Or you only use rarely.
Reviewing your subscriptions is an exercise that all of us need to undertake from time to time.
Are you inclined to be tempted when you see something on sale at a reduced price?
Maybe it didn't even cross your mind to make such a purchase,
Until you were attracted by the sale notice.
You may think,
This is a bargain,
I'll be saving money by buying this,
But remember,
You will save more money by not buying it at all.
The best bargain,
Very best bargain,
Is the bargain you refuse to buy.
We all pay for utilities of one type or another.
Very often we signed up to an introductory offer,
An offer to attract new customers with a reduced price for a certain period,
For example one year.
When the period or the year expires,
You may find that the charge has reverted to a higher monthly fee.
When fees like this are coming out of your account by direct debit,
You may not realise that you are paying more once the introductory period is over.
If you're out of contract,
Consider renegotiating the terms or changing your supplier.
Put a note in your diary to check this type of thing when the contract period is over.
An upgrade to your mobile phone can be a tempting offer,
But stop to think.
If you respond to it,
You'll be into a contract for another year or more.
Far better for you,
Once you are out of contract,
To change to a SIM only situation.
If you're out of contract,
You're free to find the best deal available.
I hope some of these suggestions will have you thinking on how you can better control your finances.
I'm sure you will have tips of your own,
Which you might like to share with me and with other listeners in the comments on this talk.
If you're feeling a little under the weather,
The temptation might be to spend your way to happiness.
But any temporary relief you feel by going on a spree,
Retail therapy,
It's not long-lasting.
And the temporary excitement is even less if you spend money that you cannot afford.
On the other hand,
The security you will feel by having a handle on your income and expenses will benefit you greatly.
Namaste.
