Life is too short for being little – Benjamin Disraeli

It’s a pity so many people confuse a simple life with a small life. A recession may be looming and worldwide consumers are tightening the belt, but you can simplify your finances without cramping your style:

Be more focused

Do you really want to start a new business, train for the Argus, write a book, learn to tango in Buenos Aires, climb Kilimanjaro, fly to India to find yourself, take French cooking lessons and qualify as a dive master all in one year? Sometimes really focusing on one aspiration at a time, with mindfulness and gratitude, can be the greatest experience of your life.

Determine which dreams and desires are yours

Is it really you wanting that 5-bedroom house with the swimming pool or are you perhaps trying too hard to fit in with colleagues and acquaintances?

Cut the clutter

Get rid of everything that doesn’t give you joy anymore, but requires maintenance, insurance and storage space. To allow new experiences into your life, you need to create the mental and physical space.

Examine your expenses

Which costs can you cut in half without feeling deprived? Love sushi? Use one of the several 50% off midweek-specials. Don’t have a time switch on your geyser yet? Using one, you can easily halve your electricity bill. Planning your annual holiday? Why not take a winter break this year and enjoy huge discounts on accommodation.

Use all the free stuff to enlarge your world

From Skype’s free instant messaging and telephone calls to Google’s free email and storage space, it’s never been cheaper to chat with friends from all over the world, or run a business from home.

Consolidate and simplify your debt

Not only will one loan repayment every month feel less overwhelming than settling several accounts, but it could also save you a small fortune in interest. Check which of your loans or accounts charges the lowest interest. (It’s very likely to be your home loan.) Then apply for just enough extra credit on that low-interest account to settle all the debt of your higher-interest accounts.

But most importantly, don’t let the recession mentality bully you into thinking small. Money has an uncanny way of following big plans, executed simply and elegantly.