Money Do’s and Dont’s for Singles
When you’re young, single and work, live and play in the city, it’s easy to get carried away with your lifestyle — and the price tag that comes with it. Especially as you start getting approved for credit cards with generous limits and everything around you starts to appear more affordable, and attainable.
It starts with the $1000 Hugo Boss jacket that’s been marked down to $600. You think “I’ve worked so hard to get here, it’s time to reward myself. Besides, I’ll pay it off in full at the end of the month, easy.” Then comes the thrill and satisfaction that you can finally, have what you want. It becomes addictive, and whether you chose to admit it sooner or later, you’re in the habit of buying things you really can’t afford.
The banks may be approving your credit card applications and you can keep telling yourself you’re completely on top of it, but the reality is, a man who earns $100 and spends $99 is richer than the man who earns $1000 and spends $1001.
Why are we spending our money before we earn it?
Don’t get me wrong, in this day and age, a credit card it a vital tool for getting better deals on flights and holiday accommodation online and even picking up that pair of $600 shoes on ebay for $120 plus shipping. Lest we forget, those ‘just-in-case’ situations. Although, the 70 percent sale at Ralph Lauren, three days before pay day hardly constitutes an emergency.
Although it’s not said, it’s a well known fact the young and single — especially the ones earning good money aren’t incubating a nest egg. Fuelling an abundant and indulgent lifestyle at a young age is a much more alluring prospect. Plus, when we’re not thinking about starting a family and buying a house, it’s easy to loose sight of why we should save money.
The good news is, you don’t have to give up everything you love and work hard for. It’s possible to continue rewarding yourself, and start putting a nest egg away by simply getting a little modest.
Here are the areas you can cut out the fat:
Expensive dates
Pre-dinner cocktails, dinner, wine, dessert and nightcaps for two at a nice restaurant can easily run into $200-$300. While it’s a really sweet gesture, why not save the special experience for special moments — or at least till after the relationship has stood the test of time? Besides, if a girl really likes you, she won’t care whether you take her to the local pub for $10 steaks and beer. If you really want to impress: cook the meal yourself.
After-work drinks
If your colleagues are into the habit of taking turns to buy rounds, politely decline and tell them you’re only staying for one drink, two at most. Everyone knows that when it comes to the round robin, someone always ends up skipping and someone always ends up footing the bill for an extra round.
Buying lunch everyday
Buying groceries and cooking for one can seem obsolete. I always hear people saying “It’s not worth cooking for one, it’s cheaper or costs just as much if I get takeaway” but the truth is, if you prepare your own meals you’ll win every time. Prepare dinner for two in the evenings and take left-overs to the office for lunch the next day. Done.
Smoking
$10 (on average) x 7 days = $70 (low estimate) spent on cigarettes every week. Put away in a savings account, that money can quickly grow into a mountain. If you need help quitting, get in touch with Quit Now.
Debt denial
Snap out of it. No matter how much you convince yourself you can pay off the credit card in full anytime you want, the reality is, if you haven’t done it, then that’s probably not true.
You can’t sort out your credit debt and dangerous splurging habits if you’re in denial. So if you use your credit card at the grocery store, to order pizza, pay for a taxi, bar tab and in retail stores — especially retail stores — you are in debt.
Pay off those credit cards once and for all and truly only use them when you need to. Even then and make sure you have the funds to cover the amount OR use a bank card that doubles up as a Mastercard and relies on the funds you have available.
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