In these harsh economic times living frugally is necessary for most people. Society is enmeshed in consumerism due to advertisements. Our ideas and perceptions are moulded by the media. There was a time when I thought everything that came out on tv or on the radio was true. In a conversation with my niece I realized that our ways of thinking are different. She grew up in a different environment from me. It is time we asked ourselves where we got our ideas and perceptions from and if they are rational at all.

Often I have reasoned with myself that I need to get something, be it a gadget or a piece of clothing. After buying it, I then find myself wondering why I made such a stupid purchase. We spend money on stuff we do not need just because we have the money but end up broke. With statistics showing us that only 2% of the population is financially independent it is no wonder that most of us need to change our ideas and perceptions when it comes to money management and spending. We should learn to live frugally. The bible says that he who is faithful in little is also faithful in much. Money has a much bigger purpose than amassing stuff!

Living frugally means we stop buying things simply because they are on sale. Simple budgeting should direct how you spend your money. The budget should cover all expenses. In that way you can see where you can cut down on your spending. In order to streamline our spending there are some guidelines that we need to follow.
• Never go shopping when you are hungry. We all know that when you see all those enticing displays of food you will make some very unwise purchases.
• Cooking your own food at home will save you lots of money. You do not have to eat out unless it is necessary. You can prepare your own lunch at home and carry it to work.
• Buy fresh foods instead of processed foods. Food processing strips out the nutrients needed by your body and processed foods generally cost more. Processed foods also contain harmful preservatives.
• Bottled water is not necessarily better than tap water! A friend of mine who is a dentist told me that in some cities it has been proven that tap water surpasses bottled water in terms of purity. It is better to invest in a water filtration system in the long run if you are concerned about the purity of your water supply rather than buying bottled water.
• Too many clothes in the closet can give you a headache. Don’t buy clothes simply because they are on sale. If you give away all those clothes that you never wear to someone who needs them, you will realize that you do not need so many clothes at all.
• A lot of stuff just complicates our lives. When you have stuff, you need to take care of it. Maybe the reason peace has departed from you is because of all that stuff you have been buying. If you find yourself being too busy without any results to show for it then you need to slow down and take stock.
• Instead of keeping the heating at maximum you can wear socks and a sweater at home. Find ways you can conserve energy.

By living frugally you can save money to eliminate existing debt or invest for a rainy day. You can even have more money to help others who are worse off than you. For me, it is fulfilling to help others than it is to buy stuff for myself. Life has more meaning when it ceases to be all about me and my stuff.

Living frugally should be a lifestyle to be effective. If not, even when our income increases we will not know where it all went to. That extra income has to work for you so that you realize your long term dreams rather than be destroyed through unwise spending. We all need a paradigm shift when it comes to what matters in life particularly if we live from hand to mouth or from paycheck to paycheck.

People say that there is good debt and bad debt. The good debt is the one which you have so that you can make an investment. This of course will mean that you have a business idea that you believe will pay off in the long run. The bad debt is the one you take out so that you can purchase stuff which does not pay you back in any way.

Experts say that people are better advised to stay away from the bad debt. Obviously if you aim to borrow money for investment purposes you should also weigh your risks. While the so-called bad debt is not a good idea I have seen some people who really manage their debt well and do not end up in trouble. Personally I do not subscribe to the idea of borrowing money. Perhaps when I have a brilliant business idea I may be tempted. As for the bad debt, I do not think it is worthwhile.

For me debt equates to bondage and I do not like the idea of being in bondage. Being a Christian the scripture which comes to my mind is the one which says, 'the borrower is servant to the lender'. Because of my personal beliefs, I am not comfortable borrowing money. My advice to anyone in debt is to pay off your debt.

How do you go about paying off your debt? When I was in the university I took advantage of the government loan facility. Everybody I knew applied for one. It was the thing to do back then and I liked the idea of being independent financially, not having to ask for money from my mum. Fortunately, I did not get full cover for the entire time I was in the university which meant that when I completed my course I had a small debt to pay.

I was one of those unfortunate people to get trailed immediately to pay back the money I owed soon after finishing the course. Some people could get away with it due to poor file management by civil servants in the ministry of higher education. In fact I heard some reports that some unscrupulous people were bribing responsible officials so that their records would disappear and they would not have to pay back the loans.

When I was trailed by the debt collectors, I had no choice but to devise a way of settling my debt. It was not easy at the time. Fortunately I managed to get a job though it was an entire year after I had graduated. I negotiated with the debt collector to pay the entire loan over 6 months. It was a huge sacrifice, but it did work out and in half a year I was debt free. That really felt good. Had I been wiser I would have converted the amount I had been paying monthly into savings after completing the loan payment. But, like most people I thought that was the best time for me to spend money on all those things I had wished for and had not been able to purchase.

People say that there is good debt and bad debt. The good debt is the one which you have so that you can make an investment. This of course will mean that you have a business idea that you believe will pay off in the long run. The bad debt is the one you take out so that you can purchase stuff which does not pay you back in any way.

Experts say that people are better advised to stay away from the bad debt. Obviously if you aim to borrow money for investment purposes you should also weigh your risks. While the so-called bad debt is not a good idea I have seen some people who really manage their debt well and do not end up in trouble. Personally I do not subscribe to the idea of borrowing money. Perhaps when I have a brilliant business idea I may be tempted. As for the bad debt, I do not think it is worthwhile.

For me debt equates to bondage and I do not like the idea of being in bondage. Being a Christian the scripture which comes to my mind is the one which says, 'the borrower is servant to the lender'. Because of my personal beliefs, I am not comfortable borrowing money. My advise to anyone in debt is to pay off your debt.

How do you go about paying off your debt? When I was in the university I took advantage of the government loan facility. Everybody I knew applied for one. It was the thing to do back then and I liked the idea of being independent financially, not having to ask for money from my mum. Fortunately, I did not get full cover for the entire time I was in the university which meant that when I completed my course I had a small debt to pay.

I was one of those unfortunate people to get trailed immediately to pay back the money I owed soon after finishing the course. Some people could get away with it due to poor file management by civil servants in the ministry of higher education. In fact I heard some reports that some unscrupulous people were bribing responsible officials so that their records would disappear and they would not have to pay back the loans.

When I was trailed by the debt collectors, I had no choice but to devise a way of settling my debt. It was not easy at the time. Fortunately I managed to get a job though it was an entire year after I had graduated. I negotiated with the debt collector to pay the entire loan over 6 months. It was a huge sacrifice, but it did work out and in half a year I was debt free. That really felt good. Had I been wiser I would have converted the amount I had been paying monthly into savings after completing the loan payment. But, like most people I thought that was the best time for me to spend money on all those things I had wished for and had not been able to purchase.