Financial Goals for 2014 – Part 2
Planning for 2014
We continue to consider our financial goals for 2014. For part one visit: https://debtfreedigi.co.za/financial-goals-2014-part-1/
Once you have gained an accurate picture of what your financial situation truly is you can now take some positive steps to reduce your expenses and take care of your debt this year.
Step Two
The second step in any financial plan for 2014 must include looking at ways to reduce your monthly obligations and costs. This is going to be necessary since the cost of transport (with Road Tolls and Petrol price increases) is set to go up this year. You will need to offset that increase with reduced spending elsewhere.
What can you cut?
You need to consider all the contracts you have and when they expire. Often we have contracts for Gym or Mobile phones that we no longer use or have. It is wise to learn when these contracts expire and to note them down on a calendar so that you can give written notice in advance that you wish to cancel them.
Do you have satellite TV ? Do you watch all the channels all the time? Can you reduce the bouquet / package that you have to a lesser one? Can you cut it out entirely? Of course the TVs role as entertainment for younger members of the family needs to be considered when making this choices. Discuss it as a family and see what can be done.
Entertain at home
Are you used to eating out or going to movies? Can you maybe reduce these activities and rather entertain at home. Invite friends around and ask them to bring something with them. Consider renting a DVD or borrowing a movie from friends (or ask them to bring the movie with them). Rather than going out to a mall can you rather go to the park or outdoors to the beach or elsewhere where you don’t have to spend money? Does a beach or park charge an entrance fee? Maybe go elsewhere where you can get in for free.
Give your family a hair cut
By buying a reasonably priced hair buzzer and scissors and giving your family haircuts yourself (ok, the first few might be dodgy) you can save enough funds to go out and have your hair done/treated when needed. Cutting hair is a little tricky but if you keep it simple you should learn pretty quickly. If the worst comes to the worst you can always buy them a cap to hide your handy work.
Turn it off
Get into the habit of turning off electronic equipment and appliances in your house when they are not in use. Does your geyser need to be on all day while you are out at work
Big and small steps
What you need to do is consider some smaller ways that you can reduce your monthly running costs. You know your situation best. The trick is not to just do things the way you did them last year. You need to be better, smarter, leaner. lots of small changes can add up and you will quickly find ways to come up with the funds needed to cover the increased cost of living. Then too don’t be scared to look at bigger ways to reduce your costs. Consider the advantages (financially) of moving to a more affordable place to stay or one that is closer to where you work. Can you manage to take public transport to and from work? Do you have to have a second vehicle or can you sell it and reduce your maintenance costs. Two vehicles means two car services, two lots of tyres etc. One big change can do wonders for your financial situation however you should consider all the ramifications of such a choice and not rush into anything of this nature. Make a list of Pros and Cons and talk about the change with your family and friends before making a descision.
Part 3 tomorrow