Harnessing Lifestyle Changes for a More Secure Financial Future

We live in a society that focuses on the headline numbers.

“Our business turned over $30m last year.”

“Peter just got a pay rise to $180k.”

“Do you want to create a six-figure side hustle?”

In doing so, we frequently miss the bigger picture - the more powerful fourth or fifth paragraph to those headlines.

“Despite the business cracking $30m in revenue, we were forced to lay off 25 staff, due to increasing cost-side pressures.”

“Peter’s pay rise is fantastic, but he now is constantly stressed and commutes 3 hours per day.”

“That six-figure side hustle, whilst bringing in $120,000 in revenue, incurs costs of around $100,000, making it a barely profitable, yet time-consuming hobby.”

In our journey towards financial prosperity, we often focus primarily on increasing income. Yet, the other side of the coin, our expenditure, holds equal importance. After all, wealth isn't exclusively about how much we earn, but also about how wisely we spend and utilise that wealth.

In my journey towards financial independence, I discovered that the mindful modulation of lifestyle can be a powerful tool for wealth creation. By intertwining smart spending with my life choices, I could cultivate a richer life, not just in financial terms, but also in experiences and time spent with family.

So, how can such a lifestyle transformation look like? There are a multitude of ways to achieve this. However, the key is, it all comes back to intention and being mindful of our true goals.

In fact, there are a range of ways that we can modify our spending, saving money in the process and gaining the amplified bonus of additional life satisfaction.

Here are five tenets that can guide your transition and help you construct a life of financial abundance:

1. Embracing Public Transport and Cycling Consider transforming your morning commute from a blur of traffic and stress into a peaceful, enriching experience. By embracing public transport and cycling, not only would you save on car-related costs, but also incorporate a workout into your day, and reduce your carbon footprint. This switch could turn your journey to work into a time for reading, contemplation, or simply watching the world wake up.

2. Cultivating the Joy of Home Cooking While dining out can be a delightful experience, frequent restaurant meals may be taxing your health and finances. Venturing into the art of home cooking might not only transform it from a chore to a joy, but also open doors to creating meals that are healthier, cheaper, and potentially tastier than their restaurant counterparts. What's more, cooking could become a shared family activity, deepening your emotional bonds.

3. Implementing Energy-Saving Measures You have the opportunity to extend your interaction with the environment through adopting energy-saving measures. Switching to energy-saving appliances, replacing bulbs with LED lights, and conserving electricity and water are just a few strategies you could consider. The impact on your utility bills can be significant, and your move towards sustainable living would contribute to a cause close to the hearts of many.

4. Exploring the World of Secondhand Shopping In the whirlwind world of fast fashion and rapid obsolescence, it's easy to end up paying for the 'newness' of items. Secondhand shopping, be it through thrift stores, garage sales, or online marketplaces, offers a viable alternative. This treasure hunt can yield high-quality items at a fraction of the cost, from clothes to furniture to electronics. This approach can extend to higher end items too, like motor vehicles and luxury fashion, which quickly depreciate in price once they are out of the lot or off the rack.

5. Learning the Art of DIY When it comes to minor repairs and renovations, acquiring the skills yourself might not only save you money, but also open up a new hobby. This hands-on approach is not just financially savvy; it can be deeply satisfying, imbuing a sense of achievement and sparking creativity. It’s also an activity that you can share with your children, up-skilling them and bringing you closer together.

Our financial lives are deeply intertwined with our lifestyle choices. As we transition towards a lifestyle of intentional spending, we align our financial habits with our long-term goals and values.

By focusing beyond the top-level numbers and embracing mindful spending, we take control of our finances and in the process, have an opportunity to create some unexpectedly pleasurable fringe benefits.

Neelan Sornalingam