Why you need to get rid of wasteful spending while you grow your financial future

You can't get rich if you have a debt mentality. So you say you need more money? How much more do you need? 5C is more - so you need to be specific. More importantly - why do you need more money? If it's to just pay the damn bills there are a few things you could look at doing. But it should not stop there. To remove a debt mentality you need to think expansion not contraction.

Eliminate wasteful spending:

OK some of these may come down as stating the blindingly obvious, but they bear repeating. 

1. Turn off lights and electrical appliances at the socket. Don't leave these sitting on standby - they still use juice - it might not seem like a lot, but over the course of a years worth of bills you will be surprised.
2. Fix the drips and stop the leaks. Exchange shower heads and taps for water wise ones. One of my biggest drains was the garden watering system. Over the years I must have fixed a dozen cracked pipes. However, with the dwindling water supply and hotter summers in Australia draining water resources I decided to stop watering the garden using the reticulation, opting to use grey water instead. But the water bills still seemed too high. Then I noticed a minute crack in yet another pipe. That was it. I found the stop valve and turned it off completely. Then I cut and sealed the pipe. The cost of water usage bill reduced and the water wasn't being wasted. Let me say that again... it was a minute crack that over the course of 1 day didn't seem like it was a lot. Over the course of the year - became huge. Get rid of the minute cracks and save.
3. Food. Go through your cupboards, refrigerator and freezer. How much money is tied up in things you haven't eaten yet? What is out of date? This is equivalent of burning money. Use up as much as you can before you buy anything else. Freeze leftovers rather than putting them into the fridge. Then take the leftovers for lunch. Double saving.
4. Carry a small notebook with you and every time you buy anything - from a cup of coffee to a boiled sweet, write down the cost, and if you paid by cash or card. If you paid by card, go through your statements to see how much you've spent on certain things - then ask if you are happy to continue doing that. If you are - then fine. But if you are getting to the end of the week having run out of money, you may want to think about your discretionary spending a little more closely.
5. Compare the market - for everything from your next insurance payment to groceries. I managed to save nearly $80 a month by shopping around for insurance... with the same terms and conditions. 

So far we've just spoken about reducing what you spend on your current base line income. Now we need to look at the other side, expanding out of the problem. 

1. If you can live on what you are currently earning, and you get them - bank all bonuses and pay rises you receive. 
2. Before paying bills or anything else - move some money into your saving account or against your mortgage - ideally both. If things are a little tight, start with 1% of your net income. As you work through the measures we described above, you may find there are other areas where you can make "savings" by not spending. Move this over as well. Aim for at least 10% of income saved.
3. Create a fortress account. Now that you are getting used to living on less money, create an account area for a second 1-10% of income. This is the income you can use to gain compound interest on. It can take some time for this to take off, but once it starts working for you your money will grow. Use this as an investment for your future.
4. Invest in your future - one of the biggest things you can do for your better financial future is to spend time working on your personal and professional development. Change is happening at an exponential rate and we need to move with it. The more you learn, the more you can earn.
5. There are many "get rich quick schemes" - which usually means someone else is going to get rich quick. Don't buy into them, but find a way to make a 2nd or 3rd income. Write a book and put it up on Amazons Kindle store. I now have 3 titles and counting. Individually they don't bring a lot of money in (yet) but over time they will.
6. Use a journal - this one may seem like an odd suggestion. but write down your good ideas. Write down the business ideas that pop into your head. Write down the improved productivity solutions that come to you. Write them down - evaluate and then begin to implement the ideas. You don't have to give up your day job to get started on building your better future. 

Action is the key to your better financially fit future. 

• Eliminate wasteful spending
• Then find ways to expand into your future.