Mindful spending will give you peace of mind
Frugality does not mean being bored
Have you ever bought something that you couldn’t afford, or avoided looking at your bank balance because no news is good news? If you want to better manage your money, consider taking on the challenge of a “Frugal February” to help get your finances under control.
Mindful spending
Most of us have items sitting in our cupboards. How many subscriptions do you have for services you never use, like a gym, a vacation club or streaming service, unread books and clothing or shoes? Such expenses are not adding any value to your life. If you relate to this, you need to consider mindful spending.
Mindful spending is a different way to look at your income and spending – focusing on what matters to you, which means doing what makes you happy, regardless of whether you are a fashionista, a techie, a runner, or an avid traveller.
The concept of mindful spending is to take all the wasted money and redirecting it to what makes you truly happy. This means using the money you have to buy what is important to you and saving up on essentials. In this way, you can save towards your financial goals while still enjoying life.
Tracking budgets
Managing your money as an adult is hard, and if you have children, the task becomes nearly impossible. Between your monthly home loan and rent payment, groceries and the cost of school fees, it is hard to survive the month, let alone save and invest for the future. That’s why it can be a good idea to create a budget that helps you keep an eye on expenses and identify savings opportunities.
A budget, in this case, is a personal financial plan that tracks and divides your income, expenses, savings, and debt payments into categories so that you can better manage your money. Using a personal budget to control your expenses creates flexibility. You don’t have to worry about money, especially since you already know how much you have, rather than holding your breath at the ATM or every time you swipe your card.
By having better control of your money, you can plan for the future and have peace of mind. Whether you want to retire at age 55 or stash enough cash for a month-long Caribbean vacation, a budget can help you reach your goal.
Once you’ve identified your financial goal, practise mindful spending. Therefore, a budget isn’t a constraint but a tool that provides you full control over your finances.
Control impulse spending
Shopping online while drinking your morning coffee is a relaxing way to start your day. But before you know it, you’ve spent the grocery money on items you don’t want. Even normally responsible people can find themselves broke without realising how they got there.
Plastic makes it easy for you to part with your money. When it comes to controlling spending, some tricks work better than others. Sometimes, it takes more than willpower to get back on the right financial path. And if you have debt you’re trying to pay off, controlling your spending becomes important.
Tips to help you spend less and save more:
• Try a “no-spend day” once or twice a week.
• Buy everything using cash.
• Know your budget.
• Unsubscribe from sale and special offer alerts.
• Institute a cool-off period for items over R1 000 – give yourself 24 or 48 hours to ponder if you really need to buy them.
Frugal living means planning how you intend to use money, and saving every month for the future. Money management is not an exact science: the right method is one you can enjoy today while saving for tomorrow.
• Prinsloo is a certified financial planner at Alexander Forbes
Mindful spending allows you to save for the future and enjoy your life