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10 Financial Skills That Will Carry You through Challenging Times
The ability to survive on a modest income is a skill. However, it’s a skill that could be useful for anyone, especially in these uncertain economic times. Even if you’re great with money in general, you might not have the expertise to live on a low income and such expertise could come in handy.
Practice these skills and you’ll be prepared for any financial challenge:
1. Be able to differentiate between wants and needs. What you consider to be a need today will change when financial resources are scarcer. Before spending any money, ask yourself if the item or service is a true need or a want.
2. Save anyway. Saving is often a challenge during good times. It’s even more challenging when money is limited. It’s still important to save a portion of any income you have, even if it is just $5 a week.
3. Know how to budget and have discipline. Just about anyone can create a budget, but it’s sticking with the budget that’s hard. It takes practice and discipline. It’s no fun to barely scrape by each month, but a budget makes it possible. It also highlights the little ways to get ahead each month.
4. Use your car as little as possible. It costs money to use a car. Combine shopping trips. Create a carpool to minimize driving to work. If possible, use a bike or walk.
5. Find an additional source of income. A part-time job can be a big help. There are many things you can do on your own instead of seeking additional employment. You can rent out your car, rent a room in your home, buy and sell items on eBay or Gumtree or Facebook, or any number of other activities.
6. Learn to eat inexpensively. A kilo of rice costs a dollar. Mince is $3 a kilo and can be made into dozens of different dishes. Choose the least expensive type of fruit. Food is a considerable expense for most families. It’s also an expense that’s easy to minimize.
7. Purchase used clothing. Use clothing stores are everywhere. Most op shops have dollar days or fill-a-bag days when their low prices are even lower.
8. Be aware of all the public assistance programs. If you’re used to living a middle-class lifestyle, you might not have the slightest idea of how to take advantage of these programs. Become familiar with what all is available in your area.
9. Find inexpensive healthcare. Look for a clinic that bulk bills for doctor visits and ancillary services such as pathology, radiology, dentistry, physiotherapy etc. Find a pharmacy that offers cheaper prescriptions, often discount department stores have inexpensive optometry and over-the-counter medications.
10. Find less expensive housing. The citizens of the Australia enjoy some of the most spacious living quarters in the world. In many countries, it’s not uncommon for ten or more people to share a small apartment. You can probably find a less expensive place to live that will work. Tiny houses are becoming more and more popular, especially in bigger cities where housing is expensive and hard to find.
Surviving during challenging financial times requires a new way of viewing money and the world. The less money you have, the more scrutiny each dollar requires before it’s spent. If you find yourself with less income than you’re accustomed to, it’s important to aggressively conserve at every opportunity.
Challenging times require a new set of skills, but they are easy to learn.
Practice these skills and you’ll be prepared for any financial challenge:
1. Be able to differentiate between wants and needs. What you consider to be a need today will change when financial resources are scarcer. Before spending any money, ask yourself if the item or service is a true need or a want.
2. Save anyway. Saving is often a challenge during good times. It’s even more challenging when money is limited. It’s still important to save a portion of any income you have, even if it is just $5 a week.
3. Know how to budget and have discipline. Just about anyone can create a budget, but it’s sticking with the budget that’s hard. It takes practice and discipline. It’s no fun to barely scrape by each month, but a budget makes it possible. It also highlights the little ways to get ahead each month.
4. Use your car as little as possible. It costs money to use a car. Combine shopping trips. Create a carpool to minimize driving to work. If possible, use a bike or walk.
5. Find an additional source of income. A part-time job can be a big help. There are many things you can do on your own instead of seeking additional employment. You can rent out your car, rent a room in your home, buy and sell items on eBay or Gumtree or Facebook, or any number of other activities.
6. Learn to eat inexpensively. A kilo of rice costs a dollar. Mince is $3 a kilo and can be made into dozens of different dishes. Choose the least expensive type of fruit. Food is a considerable expense for most families. It’s also an expense that’s easy to minimize.
7. Purchase used clothing. Use clothing stores are everywhere. Most op shops have dollar days or fill-a-bag days when their low prices are even lower.
8. Be aware of all the public assistance programs. If you’re used to living a middle-class lifestyle, you might not have the slightest idea of how to take advantage of these programs. Become familiar with what all is available in your area.
9. Find inexpensive healthcare. Look for a clinic that bulk bills for doctor visits and ancillary services such as pathology, radiology, dentistry, physiotherapy etc. Find a pharmacy that offers cheaper prescriptions, often discount department stores have inexpensive optometry and over-the-counter medications.
10. Find less expensive housing. The citizens of the Australia enjoy some of the most spacious living quarters in the world. In many countries, it’s not uncommon for ten or more people to share a small apartment. You can probably find a less expensive place to live that will work. Tiny houses are becoming more and more popular, especially in bigger cities where housing is expensive and hard to find.
Surviving during challenging financial times requires a new way of viewing money and the world. The less money you have, the more scrutiny each dollar requires before it’s spent. If you find yourself with less income than you’re accustomed to, it’s important to aggressively conserve at every opportunity.
Challenging times require a new set of skills, but they are easy to learn.