Should I Spend Less on Luxuries?

Most of us spend some of our money on luxury items as well as buying necessities. This means that we could be spending more than necessary. It can therefore be worth thinking about whether you should be spending less money on luxury items. This can depend on your circumstances though.

How much is spent on luxuries?

It can be good to start by working out how much money you spend on luxuries. This is fairly easy to do because you will be able to look at your bank statements and separate out all of the necessary spending. This will include things like rent or mortgage, utilities, contracts, loan repayments, travel to work, food, work and school clothing etc. Anything left will be a luxury item and you can add these up. It might be rather a shock as to how much you spend on these, but this is okay as long as you can afford to spend this much money. However, if you are wondering whether you should spend less on luxuries there is probably a reason for this. It might be the case that you are struggling to make ends meet each month, that you would like to save some extra money or you want to repay some loans.

What else could the money go towards?

It is therefore good to have a think about what you could spend the money on if it was not spend on luxuries. It would be wise to prioritise buying necessities and make sure that you have enough money to pay for all of those before you buy any luxury items. You also need to think about the fact that if you have loans, then you might want to pay then off to save money. With some loans, such as payday loans, they are flexible and it is possible to make overpayments so that you can repay them early and save money. Some loans however have a charge if you want to do this and so you need to investigate this to make sure that you are not paying more in charges than you are saving in interest.

You may also be able to use the money to put into a savings account. It can feel good to have some savings behind you. It means that you will have money to fall back on if you need to buy things in an emergency. You will be able to pay for items rather than having to borrow the money. It will also be there for you if you need to have money, perhaps if you lose your job or are unwell and have to manage on sick pay.

It can be hard to give up luxury items. They are our treats that we buy to make ourselves happy. Therefore, giving them up can feel tough. However, if you have thought through the reasons that you should give them up, hopefully this will help to motivate you and you will think that it is worthwhile. You should be able to feel more positive about giving up some things if you know that you will be getting something good in return. If you know that you will be able to manage your bills more easily, save some money or repay some loans, that will hopefully help you to feel that it is worth it. Of course, you do not need to give up all of your spending on luxuries, you can still treat yourself a bit. It is up to you of course, how much you decide to treat yourself. You may also find that there will be some months when you will be able to afford to treat yourself more easily than others and so that will make a difference as well.

How Can I Increase my Income?

There are many of us that would like to have more money. It can be lovely to think that we might be in a position where we could pay off our loans, easily manage to buy everything that we need, have a few luxuries and save some money as well. However, the reality for most people is that the only way that they will be able to manage this will be if they get more income. However, there are lots of ways that we can do this and hopefully there will be something that everyone can achieve.

Earn more from your job

If you have a job at the moment then it could be possible to earn more from that. For example, you might be able to get more money by asking for a pay rise, trying to get a promotion or working more hours. These might be things that you cannot do or have already tried, but f you have not considered them then look into them. It could be that there are certain ways to apply for a pay rise or promotion and it is well worth finding out about these to see whether you can get them. It might even be the case that you will need to look for a job in a different company to be able to earn more from what you do. This is something that is not always that easy, depending on what is available and whether you are prepared to move. It is worth considering it though and seeing what else is available to see if you could move and get more money.

Get a second job

If you cannot get enough form your current job, then you might need to consider getting a second job to top up your income. If you work standard working hours then you might be able to find something in the evenings or at weekends. Of course, this will depend on what other commitments you have and whether you feel that you will be able to cope with working those extra hours. It might be that you feel this will be too much for you to do in the long term so you will need to think carefully about it and whether you will be able to manage.

Do some work at home

It can be less stressful to do some work at home. There are online jobs that you can do at home. These tend to be small jobs rather than ongoing things, which will give you an opportunity to try a few things and see whether you think that you will be able to manage them without having to commit to something big. These vary a lot and there are things to suit all sorts of different skill sets. It can be a fun thing to do as well and much more relaxed than doing a standard sort of job. It could pay less, but you may be happy to work for less money if you know that it will be relaxed and fun and also convenient.

Make money from your home

It might be possible to make money from your home as well. Firstly, if you have possessions that you no longer need, then you might be able to sell them to make some money. This will not be an income, but it could give you a chunk of money which could help you out.  If you own your home then you might be able to rent out a room, provide a B&B service, rent out storage space or even your driveway. There are lots of different things that you could try out to make money. You will need to check that you insurer is happy with you doing this and that you mortgage lender is also okay with it, if you still have a mortgage, but it is very likely that it will be okay for you to do it.