For most people who have made the decision to Downshift, there is a requirement to reduce spending habits because there is less income coming in. Based on experience, you will find that a lot of the money that was being spent in the past was being wasted on material items that were truly not necessities but were purchased because you thought you needed them. Most of these items, (like that third DVD player for the kitchen so you could watch movies whilst you cook up your two minute noodles) are completely unnecessary. Perhaps some would argue that even one DVD player or TV is more than enough. Anyway, I digress, the first step in getting your finances in order is to start monitoring where you are spending your money. Map out your fixed costs on a spreadsheet such as Home Phone, Mobile/s, Rent, Electricity, Internet Connection, Banking etc etc and get a clear overview of where your money is currently being spent. From here you will begin to see where costs can be reduced and often it just takes a little bit of research to find a better deal, especially with regard to things like insurance, phone and other core utilities like gas and electricity. Determine what costs have to be made on a regular basis and weigh this up against your income coming in.
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