Living expenses such as rent, water, electricity, transportation, maintenance etc. is costly. Over and above paying rent or an installment on a home loan, there can be several added expenses on a monthly basis that one might not have budgeted for originally and can end up causing one to live above one’s financial means.
Live within your financial means
Accommodation
When it comes to renting or buying accommodation, people often have a bigger space that what they really need. For example, a two-bedroom apartment for a single occupant, or a three-bedroom townhouse for a couple (2). The questions to ask if you are struggling to afford the rent or home loan installments is – do I really need such a big place or can I downsize to pay less rent/loan installment?
Personal stuff
Another question one might ask is – do I have too much stuff in my house/apartment that prevents me from downsizing? Do I really need all that stuff? Living within one’s financial means can be defined as living with what you need, and not necessarily what you want and be happy with it. If one is cash-strapped, consider selling all unneeded stuff or donating it to a charity.
Furniture
Do you really need to go into debt to buy that beautiful R15 000 lounge suite, or can you live debt free and buy a cheaper & simpler lounge suite, or even a good condition second hand set? South African society have become accustomed to buying mainly new goods, where there are plenty good condition goods available in the second hand market, but not selling well. Most people like to buy new, but again ask yourself is it worthwhile creating debt and buy new, or do I buy what I can afford and maintain my financial freedom?
Share the expense
If you have an extra room in your apartment or townhouse and struggling to pay the rent / home loan installment, considering renting out a room to supplement your monthly income.
The room can be rented out to a roommate, or even for storage.
Should you have a garage or parking area you don’t need to use, that can also be rented out to supplement your income.
Don’t waste utilities
Electricity
Running a high electricity bill every month and don’t know why?
Consider in winter the type of heating system you use. Ask yourself if a heater is really necessary to put on, or can one cuddle up under a blanket in front of the tv?
Gas heaters are normally more affordable than electrical heaters.
Using a tumble dryer instead of a washing line can also increase your electricity bill.
Using underfloor heating is very comfortable, however also heavy on the electricity.
Consider getting a much sunlight as possible in the apartment / house, even if it means cutting back trees / plants in the garden obstructing sunlight.
Water
One can save on water consumption by taking a quick shower instead of a bath, or only use half of the bath water if you do need to bath. Another way of saving water is to share the water with a partner or child, thereby only running one bath for two people to use.
Fix any leaking taps or water pipes as needed, as it wastes water and unnecessarily increases one’s water bill.
Wash only full loads in the washing machine to work economically with water.
Consider used bath water to water the garden, opposed to turning on the garden hose, if you need to reduce your water expense.
Reduce running costs
Some day-to-day expenses can be reduced as not all of the product is needed. For example:
- Do you need to have uncapped fibre or will capped fibre be sufficient?
- Do you need DSTV, Netflix, Amazon Prime and Showmax, or is one or two of the channel providers sufficient?
- Do you need a cell phone contract with so much data and airtime when you have internet fibre at home?
- Do you need to own car if you live within walking distance from work and the shops?
- Can you start a lift club to share transport expenses?
Conclusion
There are always ways and means to earn extra and save money, so that you are able to live within your financial means.