Do you really need it?

You may want a very big house, but do you really need it in this economy? Can you stay in the house you are in, or if your mortgage is too onerous for you to handle, perhaps you could consider downgrading and moving to a smaller house?

I had to grapple with this situation a couple of years ago. I found the house of my dreams – it had everything in it that I had ever wanted. However, I had a feeling that the economy was turning and I decided not to go ahead. I realised that it was something I wanted and not something I needed.

Do you want or need a luxury car? Could you make do with something that gets you from A to B?

Do you want or need more clothing or an extra piece of jewellery? What is it that you do need? You may say that you need things for business, for example, better clothing. But do you really need more clothing or could you buy clothing more cheaply?

Ladies, how many pairs of shoes do you actually need?

While some books are wonderful to own, must you own all the books you read, or can you get some at the library?

How often do you go out to eat? What kinds of restaurants do you go to? Can you cut back on the number of time you entertain or go out to dinner? Can you cut back on the types of entertainment you go to?

Everyone nowadays seems to love everything electronic. Do you really need all those electronic toys? How fancy does your computer have to be? How much of a sound system do you need to enjoy your music? Can you do these things more cheaply or relinquish them altogether when necessary?

It’s better to know what your options are to conserve your assets rather than wait around and some day maybe have to give them up altogether.

Right now, while you still have a choice, if the economy is affecting you adversely and you are being forced to reorganise your priorities, you would be best served by taking a look at what you have, what you are willing to give upa dn what you are willing to economise on. So if you are ever in a position where you have to give up something or everything, it will be less painful. Any by economising now, when you are not being forced to do it, you will end up with a plus in your savings account.

Many people just want to get away from it all and they go on holidays that they can ill-afford. When they come back nothing has changed in their lives, except now when they come back from holiday they have less money than when they started. If you are going on holiday, make sure you can afford it and there is still going to be money for you when you come back.

Everyone needs a break in their routine. It doesn’t mean you have to spend money to take that break. Take advantage of the free things that are available to you – walking, cycling, fishing, free concerts, art galleries, museums.

In an economic recession, people get more depressed more easily so they need a little lift from time to time. However, there is no reason to think total depression at the thought of having no money, no entertainment and nothing to break up the doom and gloom when there are plenty of free activities to do. It requires friends and family to pull together to do things that are enjoyable to lift one another’s spirits.