Without even noticing, many of us have fallen into the habit of mindlessly spending money on unnecessary things, every day. Take a good look at your lifestyle and spending habits and see for yourself.

Who wants to be a millionaire?

Who doesn’t want to retire early with no debt and millions in the bank? Unfortunately, there is no quick fix. The formula is simple: spend less and save more. If that sounds too good to be true, here’s the rest: to save is going to cost you and you may have to make a few lifestyle and spending changes, too.

Think like a millionaire. Here are a few suggestions to help you:

Count the costs

Set up a budget and make a thorough investigation of how much money you have and where it is going to. Take an honest look at your lifestyle habits and what they cost you. Next, analyse your daily expenditures. Write it down in a notebook or get hold of an app that will automatically track your expenses for you.

Change your shopping and buying habits

  • Watch when and how often you go to the shops. Know for a fact that the longer you stay, the more you are going to spend! Learn to delay gratification when you see something you want to buy. Yes, it is possible; walk away and return an hour or two later, or promise yourself to come back tomorrow.
  • Eat before you leave or you will be tempted to buy everything that looks and smells good.
  • Watch the seasons. Buy in-season food that is plentiful. Do the same with clothing; wait for the turn-of-the-season sales but don’t go on the first day. Wait it out, those prices are going to drop further as the weeks go by. Don’t be fooled; remember that saving 5% on a R10 item is virtually no saving at all while saving 5% on a R1000 or R10000 item is substantial.
  • Put a moratorium (freeze) on buying fast food and eating out, including your daily cuppa coffee, soda drink, sandwich, muffin or other “grab and eat” item of food. Cook from scratch and take your own, home-made meal to work.
  • Buy to save. Successful money-savers invest their money, for example, in further education, a reliable (not flashy) car, a comfortable (not luxury) house, reliable energy-saving household appliances, etc.

Change your banking habits

Banks are not welfare institutions; they are there to make money out of you. Find one that gives you the best deals on interest and service fees. Break the habit of making numerous cash withdrawals and use your debit card instead. Credit cards tempt and trick you into thinking you have money when you don’t. Speak to your bank about its online banking options and how to make “free” online payments. Never withdraw cash from another bank’s ATM, walk the extra mile! If you are disciplined enough, use cash only.

Change your entertainment habits

Check out how much you are paying for the “privilege” of flipping through endless TV channels you seldom watch and then switch to a cheaper option. Consider buying Netflix or using iTunes for entertainment. Reduce other fixed cost subscriptions to magazines and gym membership that you seldom use. Cut back on lavish outings and holidays and rather plan and save-up for one really memorable all inclusive family holiday during the off season when prices are low.

Change your mind-set

Thomas Antunez, a self-styled young millionaire who owned five Porsches and three Mercedes-Benzes before the age of 35, posted this warning: “You can count those as the eight biggest financial mistakes I’ve ever made and it all had to do with my inability to be content with what I already had. Believe me, possession of ‘things’ is a race no one can win. Learning to want the things you already have will save you an incredible amount of money.”

 

Sources:

Coles, S. 2017. The small habits that can bring big savings. Retrieved from: https://www.aol.co.uk/money/2017/07/18/the-small-habits-that-can-bring-big-savings/

Elkins, K. 2015. Twenty-one lifestyle changes to make if you want to save more money. Retrieved from: http://www.businessinsider.com/lifestyle-changes-to-save-more-money-2015-11

Loudenback, T. 2017. Twelve small lifestyle habits you can adopt to save more money. Retrieved from: http://www.businessinsider.com/small-lifestyle-habits-to-save-more-money-2017-1/#learn-the-difference-between-saving-a-dollar-and-saving-a-percentage-1