Debt comes in many forms – credit cards, hire purchase, car loans, personal loans, mortgages & student loans. There’s no shortage of people out there wanting to lend us money! Borrowing money can seem like a quick fix, but carrying debt can end up being a serious drag on our finances.
A few tips for Financial Wellness
- Try to see where are you over-spending? Do an honest expense report for yourself. Where are you spending too much? Rent is a common culprit -experts say this should not be more than 30 percent of your income. Moving to a cheaper place is extremely freeing!
- Start saving. Or at least try. This is a trick many financially savvy people know about. Before you spend a single cent – put away at least 10 percent of your income into a savings account. If you can’t manage 10 percent try less.
- Limit the entertainment overdose. Eating and drinking out are often the reason your money is tight – Fast food outlets, takeaway dinners, lunches and munchies all add up.
- Try no spending for one day a week. Once you do it a few times, you will have achieved a goal. Try a walk outside, making lunch for your partner, playing with the kids, walking the family pet. Avoid shopping malls, Fast food outlets, and places that make you want to spend.
- Remember less is more – need all those tv channels, Sky, Netflix, Google play? Need that gym membership if you only go once a week? Look for cheaper alternatives.
- Carry cash. Not only does this make you feel wealthy – you are less likely to want to hand out your cash on rubbish you do not need. Using a plastic card is easy and does not have the same realization as to what you are spending.
- Avoid being lured in by ‘Offers’ of easy loans or fast cash lenders – these loans have huge interest attached to them. Might be okay at the time, but you end up paying these loans off for what seems forever.