Financial stability is one of those things none of us would turn down.
Sadly, many of us go through life struggling financially, even with a steady source of income. This tends to indicate we’re spending more than we earn, throwing us into a financial cycle that doesn’t lead to freedom. Financial advisors will tell you it’s possible to come up with a wise spending and savings culture that will eventually lead to financial freedom. In this article we’ve rounded up some of the top tips on cutting out expenditure that’s not helping you achieve your goals;
1. Eating Out Often
The amount you spend on lunch could be used to do so much more. If on average you spend 500 naira for lunch, five days a week, and work four weeks in a month, you’ll have spent N120,000 in a year. Assuming you’d carried lunch instead and saved this cash, you had saved that money you could open a business that can have returns of more than N120,000 once you break even.
Spending money regularly eating out depletes your budget and may hinder your financial growth. If it becomes hard to minimize the meetings especially if you are a business person that needs to meet clients, make sure that you go for the cheapest option in the menu. Do not enter bankrupt in an endeavor to please people in restaurants. Secondly, carry lunch from home if you work a day job.
The world is continually getting influxed with so many subscriptions of services targeting the average earner. This means that you might be tempted to subscribe to services that eat up your money even without your consent.
You will be surprised at how many people subscribe to services because they seem cheap or because a service provider approached you.
Instead of subscribing to every service that comes your way, take advantage of the free services such as the free to air services on TV, free internet at the office or the cheaply provided Wi-Fi at cyber cafes.
Lots of people seem to attach certain class of gadgets to the financial status of the person owning them. This leads to a sort of a rat race in an endeavor to acquire these latest phones, music systems or even personal computers.
Unless you really require the output from a high end laptop or pone there is no need of buying just to impress your friends. Instead of spending money on unnecessary gadgets that you don’t need, you can consider saving the money and investing it in an income generating venture.
4. Social Events
We all love celebrations. Be it baby showers, birthday, bridal shower or any other life milestones that need celebrating. It is important to realize that you don’t have to be part of all the celebrations that your friends invite you to. Overly committing your money on these events can eat up your money. Be moderate on your commitment and these amounts of money that you give and invest the rest of the money on meaningful ventures that have returns on investment.
5. Buying Brand Items
Buying expensive items because of the brand can end up eating up your money. For example, when you walk in a supermarket you find different brand items such as tissue paper – Their price gap sometimes is outrageous. Why buy a piece that is costing you 1000 naira while you could get the same size at 100 naira? They serve the same purpose so avoid overspending just because you want to buy an item of a certain brand.