I’ve written before about being a better shopper, knowing what you want and being able to spend within your means. I’ve learnt in one way or another that this last statement is very true and very realistic in the era we are living – especially in Portugal. I feel it all over the world, in Dubai, Lisbon or New York, but I only speak from what I know. When you start to live out on your own, without your parents helping you, it can become tricky because you finally realize what it takes to maintain a house or an apartment, how much grocery shopping costs, dinners and nights out, clothes, shoes or even a simple piece of furniture. You start to take into account every single expense you have and remove what feels unnecessary until a certain point. This is even more real when you live abroad and asking for help becomes harder. I’ll let you in on my little secrets to setting priorities when you are on a budget.
Start comparing prices when at different supermarkets or even farmers markets. The exact same product can have different prices depending on where you buy it (e.g. when you buy spaghetti at Whole Foods or Path Mark).
If you are buying whatever items for your house, wether furniture, throws, rugs, a lamp, always ask yourself if you really need it for your most basic living (e.g. some of the few extras we bought when moving into our apartment were two rugs, candles, two frames and two baskets).
If you want to browse the latest collection – on or offline – don’t! You will have to over come a lot of temptation. Get only things you really need (e.g. this winter I really need a good coat, lots of socks and a pair of boots for the rain/snow).
Any money left at the end of the month or week should, ideally and will eventually, go to a savings account. But considering our particular case, and until we are settled, we use it to have a dinner out every now and then – normally once a week.
You have to keep it as simple as you can, every time you leave your house. Don’t over think it, or otherwise you can get sad or mad or irritated, and it’s not worth it. Look at it as a phase even our parents went through. It’s a struggle you’re going to be thankful one day because it taught you the importance of money and showed you how to be practical in desperate times.