Finance
Downshifting
and
Finances
Anais Nin
A plethora to choose from, all only too pleased to take your money!
Moneysupermarket.com give you price comparisons on many things, including Utility Bills and more
You, your family and friends are now behind your dream
and thngs are pretty well set up for the big day. Great.
Unfortunately though, finance cannot be overlooked at this stage. Money does to a certain extent make the world go round and if you haven't any - it comes to a rather abrupt halt !
If you're had a bit of a trial run and readily prepared that's good. If you're not, there could be problems ahead.
No more are the midday snacks, the morning paper, the chocolate bar on the way home, even a bunch of flowers for the wife. But, the positive side is that you don't need them anymore and as for the flowers, I have no doubt you'll soon be having a bit more work to do in the garden and grow your own anyway.
Tip: Say you're growing them just for her and if you're a woman downshifter, say you're growing them for yourself !
During all the preparation why not have a re-look at your mortgage, life asurance and other policies. There's a good chance you can shop around for better deals or release some equity somewhere.
The more your bank balance is to begin with, the better safety net you have. There will always be the unexpected, the things you just took for granted and reached out for your cheque book.
Again, ask yourself "Is that really necessary" over every outgoing item. Don't let it ride and see, look before your downshift and do it then.
It's a good thing to look at your transportation. Do you have two cars and you do really need them both ? Would a smaller car, or even a van be better.
With a Van, you have an opportunity to use it in a form of income for you, either as getting to and from jobs with equipment or even offering a small delivery service above whatever else you have.
The more open ended options you have, the better. I had approximately 6 months salary in my bank when I downshifted, in two years it had gone. Mainly because I didn't want to upload my work load and second because I was not aware of those emergancy moments such gear boxes, accidents and going for cheaper options with equipment which simply didn't last the distance.
It pays, if you're going into a small business to buy the best whilst you can afford it. It'll last longer and the return will be higher.
I have a main job through summer (see My Story), but have to do all sorts of things during the winter to keep myself afloat, things I'd have never imagined
My direct debits
exceed my
estimated
earnings,
what can I do
to cut back ?
Would relooking
at my transportation save me money ?
Have I something to fall back on should I be ill ?
(Tip - If you haven't downshifted yet, get yourself on a NHS Dentists waiting list)
Have I a business plan ?
It makes you wonder how many trees are used for these in a year!
Luckily I've managed to ride financial crisis storms, not through skill, but by wheeling and dealing a bit and a lot of luck thrown in.
On occasions some downshifters find themselves earning more after a while. What was to be a new life of less pay doing something enjoyable becomes, maybe surprisingly, financially successful.
At this stage you can decide which way to go. You can carry on building your new business to dizzy heights, or you can put things on pause to allow you the freedom of movement more.
But for many, life isn't like this and can be 'what seemed to be a good idea at the time' can become a nightmare.
In these situations you need to diversify your work as much as possible. ie If there aren't any decorating jobs to do, buy a Hedgetrimmer and cut hedges etc.
Home Page | Contact | Links | Site Index
Copyright (c) R.Cannon 2007 -
