Economising

is a must if you want to achieve financial freedom. The lack of money is often not the problem, it is the way we spend it. Wealthy people tend to spend money on things that increase in value or provide them with a return on their investment. People who are not wealthy spend the bulk of their money on items that perish, depreciate or have no return on their investment. Even the family home, which is often the most expensive item that most people purchase, usually provides no return on their large capital outlay.

There is one main reason why people get themselves into financial difficulties. They simply spend more than they earn. The two ways of increasing wealth is to increase our income, or decrease our expenditures.

Unfortunately, through increased exposure to advertising and access to products, we are constantly enticed into having more and more material possessions. The easiest way to resist this temptation is to establish a plan where we always save a little of our income and learn to control our debt. If we do this consistently and regularly, we will eventually form a habit that will overcome our financial difficulties and lead us to financial freedom.

Money is there to provide security, satisfaction and joy in our lives, and we can have some of life's luxuries along the way. However, while we are learning to manage our finances, we need to control our spending and allocate our money according to our needs. Intiallly, this means we may have to eliminate wastage and extravagance, and identify the things we really need to lead happy, fullfiling lives. We need to remain conscious around our spending. We need to remind ourselves that every cent we spend-does count! Intially, this may mean we have to cut back a little, but it is only directed at wastage and extravagance.

It requires a mature, pratical approach, which is within all of us, to become great financial managers. A little planning, a little discipling and often a bit "self-talk' are all that is required. It just takes a moment to stop and remind ourselves to think long-term, not short-term.

The trick to economising is actually quite simple. Before you part with your money, always ask " Do I really need this?". If you develop a little voice in your head every time you go shopping that asks you this question, and you listen to and obey the answer, you will automatically start to economise.

Economising is not about living frugally. It is not about not sharing your money. It is not about penny pinching an living without the things you really need. Economising is simply about not wasting your money, not being extravagant and not buying things you cannot afford.

There is always the tendency to spend when we should be saving. The surplus money comes in and our automatic response is to go out and splurge. this the very behaviour we need to address before we can become financial stable. We need to keep reminding ourselves of the one of the most important rules of money managemnt: Spend less than you earn", and then invest what you save. Only then can you surge ahead along the path to financial freedom.

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