Kaleidoscope: Life through different lenses

Spend Less, Save More

“What some people mistake for the high cost of living is really the cost of living high,” (Doug Larsom

I cannot say this enough: I am not a financial adviser or expert; however, I do believe that we learn best from people who were once at our level and have made changes. We learn from those who made mistakes, picked themselves up and soldiered on towards success. 

Good Finance Management Needs A Mental Shift

When I look back at my past financial mistakes, I realise that I allowed my wants and whims to dominate my spending decisions. I had an “I need now” attitude rather than “this can wait until I am able to afford it.” Writing down my daily spending kept me accountable to excessive shopping and insufficient financial planning, which I was not ready to face. Each time I swiped or made that purchase, my internal alarm bells went off. Yet I chose to ignore it and focus on the short-term “pleasures” I got from my purchases. But as a lifelong dreamer, I had plans for my life that included purchasing my first home. Knowing that this was my ultimate goal became the force I needed to make some much-needed change. This wasn’t easy, but I slowly began to close each and every clothing account once they were paid off. My credit cards were the last to be paid off, but a huge burden was lifted off my shoulders. I did not dread paydays because I knew I had less debt and more options for how to spend my money. When I eventually changed jobs and moved overseas, I paid off my last two high-interest credit cards and started looking for alternative ways of handling my finances more efficiently.

Consistency Can Pay Off

To move forward towards financial freedom, most of us need a system that works. You need to commit to a plan. This quote from Jean Paul Capon resonates with me: “commitment is an act, not a word.” You need to show consistency, but give yourself grace to slip up now and then.

• Although I was able to purchase my first home, sometimes I slipped back into my old spending habits, and I knew things had to change. I began to force myself to look ever more closely at each of my bank statements. In the past, I did not want to face this because it was depressing and overwhelming to see the credit card balance increasing due to the monthly interest and to know that half my salary was already spent before I received it.
• I knew that I liked not being in debt and enjoyed seeing my emergency funds and savings growing. Thus began my search for a convenient way to monitor my finances monthly.
• I still liked using credit cards to help build my credit history. However, I did my homework and carefully selected banks that offered zero annual fees for using the card and cash incentives or points based on different types of transactions.
• Using credit cards isn’t bad, but it’s important to use them responsibly. I knew that to have a credit card, I wanted a zero balance and monthly transfers that could incur interest.
• Then I made a deal with myself and set a realistic budget that covers some whim purchases and regular monthly bills. However, I understood that I had to settle that balance each month, which limited how much I could spend without causing financial stress.
• I was determined to record every single transaction, no matter how small or big. But the notebook system was not effective for me. My search led me to discover the Travel Spend App. For me, this digitised system for monitoring money was accessible and more convenient.

Travel spend app

• The Travel Spend App is designed primarily for frequent travellers who want a convenient way to monitor their finances whilst on holiday trips. I use this app for both when I travel and to monitor my monthly spend.
• You can start by setting up a monthly budget, then enter the dates this budget will cover. Every amount spent is recorded in the app. It auto-calculates and deducts from your initial set budget. This helps me monitor how my money is used each month, and I can also make cross-comparisons of spending across different months and time periods. It is easy to see what took up most of my money, thanks to the monthly snapshot of the spending graph I get.
• You can even link this app to your Apple Pay, so any amounts you spend are automatically recorded in the app.
• Recurring payments, such as telephone and internet bills, are automatically included in each monthly budget.
• When I travel and enter purchases into the app, it automatically converts the amount to my home currency.

Learning to budget and stay on track takes practice and dedication. It is an ongoing process that only works when you find a system that suits you. This is the link to the Travel Spend app: https://travel-spend.com . There are free trials you can use to decide whether you want to commit. Choose the best system to help you keep an active track of your money.