When the situations calls for drastic measures are you ready to downsize and substitute to ensure your finances remains afloat?
A person with so many financial commitments like having a family to support, a house loan, a car loan and monthly bills to pay may be faced with having to downsize and substitute.
Downsizing and substituting means replacing your current properties or lifestyle to a â€œcheaperâ€ version.
â€¢ Your abode
If your current home is too expensive, where the loan or mortgage is too much and the maintenance fees plus the utilities are high every month, switching to a cheaper home is more practical.
â€¢ Your vehicle
Nowadays, it is normal to have two cars for every household. If you find that two cars are expensive to maintain, then reducing to one car may be the answer. The other option is to switch to two modest and affordable vehicles.
â€¢ Your lifestyle
There are so many areas which can be adjusted with regards to lifestyle. For example, if you are addicted to brewed coffee from Starbucks every morning, you can instead purchase a coffee maker and make your own every morning. This should save more money over the long term. Another example is if you pay a membership fee to a gym which you only attend once a week. It makes sense to cancel the membership and invest the money in buying sports equipment. This again saves money in the long run. Do not splurge immediately on expensive equipment but slowly build up your money first to acquire them one by one.
Downsizing and substitution makes it less painful to manage your money. This is preferable to eliminating expenses where you sacrifice and give up something. Rather than total elimination, you find a cheaper alternative that is more budget friendly. Do you think downsizing and substitution would work for you?