What is financial wellbeing?
Financial wellbeing is the process of learning how to successfully manage your finances. It is about having control of your money on a day to day basis.
Money plays a vital role in our lives. Not having enough money can affect our health and happiness. Financial wellbeing is about having a sense of security, a sense of having enough money to meet your needs. It is also about having a sense of financial freedom to make choices that allow you to enjoy your life.
As the common saying goes: ‘’we like to impress people who we don’t know, with money that we don’t have’’. The reality is that if we LIVE FAKE RICH now, we will RETIRE REAL POOR later.
Gratitude and Capitilism
Teach your kids that money doesn’t define you or make you happy. You will realise that you don’t need much to be happy. Very little is needed to make a happy life. That’s why they say that the best things in life are free. All the new clothes and makeup will never make you feel good if you are not happy with who you are. Focus on BLESSINGS, not THINGS.
Everywhere we look we are bombarded with the idea that we need to be richer, thinner, smarter, better looking, more successful, healthier, better parents/partners.
IF WE LIKED OURSELVES JUST THE WAY WE ARE, THE ADVERTISING INDUSTRY WILL PERISH.
Minimalism is not about owning LESS than you need. It is about owning EXACTLY what you need. If we are grateful for what we have, then we can’t be constantly sold products or services that cater to our INSECURITIES and our notions of keeping up with the Jone’s.
Financial planning is about balancing your needs and wants forTODAY with your needs and wants for TOMORROW.
If all this is too much for you, start with at least being AWARE of where your money is being spent.
Self assured spenders are spenders who spend with INTENTION.
The key to financial balance is to both SAVE and SPEND with INTENTON.
Intentional spending is when you realise or determine what makes YOU happy, and then plan your finances so that you can afford that as much as possible.
The first step is to be aware of where your money is going.
Go through your monthly bank statements. Use them to draw up a monthly budget. List all your expenses. Include an allowance for entertainment. If you pay for all your expenses by debit card, it will be easier to keep track of even small payments which all add up. If however you choose to draw cash weekly to spend on groceries and what not: you will need to keep all your till slips, this may become tedious, and you won’t get a true reflection this way.
Add up your yearly ‘’once off ’expenses like SARS payments, vehicle license, Tv license etc, and divide it by 12, to get an amount to allocate monthly. Every month transfer this amount to a savings account.
It is important to celebrate wins. If you are able to save money, allocate an amount for a treat.
Eg, I love to have my hair done at a professional salon. So instead of saying that I can’t afford it, I ask myself HOW will I be able to afford it? I keep some money aside every month and then I use it only when the salon has specials. My salon has 30% off colour on Sundays and R500 off on a Wednesday. I stick to these days only. It really helps to save a lot of money and it doesn’t add to the guilt factor.
If you like your morning lattes: instead of no lattes, change your coffee shop to a cheaper one or one with a rewards programme.
What does social media have to do with saving? Our subconscious mind is strongly related to our spending habits. Unfollow if you must – accounts that encourage you to buy new clothes, makeup, skincare all the time.
Follow accounts that encourage saving. #debtfreecommunity. It is encouraging to see others with a similar mindset. It will become normal to save rather than spend.
• Find activities to do on the weekends that don’t involve spending a lot of money. Instead of going to the movies, plan picnics at the park, play boardgames, watch Netflix.
• Sacrifice spending on frivolous items like updating your wardrobe according to trends. Rather invest in yourself. Learn a new skill, enrich your knowledge.
• Keep your car tyres filled
• Meal plan on weekends. Draw up a menu for the upcoming week. Then go your grocery list. You will be surprised how few groceries you will need to buy.
• Don’t be tempted with 3/2 sales. It’s a gimmick to get you to buy more than you actually need. Stock piling is good only for very fast moving items. Otherwise it is money sitting on your shelf.
• Online shops like superbalist and zando have voucher codes regularly to buy items at reduced prices. if you like something and you are patient, you can score it at 40% off on suberbalist and 20% off at zando. It may get sold out though. If you are scared to buy with your credit card, they do have an option to pay via eft.
• Try a Need-Only_Diet – over 7 days try to buy only absolute necessities and pass up things like gum and caffe lattes.
• Visit your local library. New books can be expensive. Libraries also have new dvds and magazines that you can borrow for free.
With the right mindset, budgets and changing your spending habits it is possible to save money.
Remember slow and steady wins the race. No matter your circumstances find something small to start today. Even if you now just become aware of where your money is going.
Your income does not define you. Wealth or being rich means different things to different people. Remember to count your blessings that money cant buy for those are your real riches. Gratitude is the best attitude.
Please share your own money saving tips in the comments section below. I would love to hear what works for you.