We like the concept of investing regularly and having the time in the market to allow your money to do what it should do; make money for you. As Benjamin Franklin said “Money makes money. And the money that money makes, makes money.” There are two ways to save more money; earn more, or spend less. Below are a few money saving tips that you can implement to spend less and free up a bit more cash to invest this year.
Firstly, the best way to save money is to get a handle on what you’re spending. Make it your year to nail budgeting and work out exactly what money comes in and goes out every month. Review your costs by going through your bank and credit card statements from the last 3-6 months. Group costs together into a spreadsheet for things like rent/mortgage, groceries, bills, travel/car costs, socialising and take a monthly average. Know your costs!
The below tips will assist you in saving money. Use your savings wisely and either continue your current investment plan or implement one for the first time. Small amounts invested add up very quickly. Even an extra $40 per week invested for 40 years is worth over $500,000* when you need it in retirement.
1. Call your bank and ask for a rate review on your mortgage
As the saying goes… if you don’t ask you don’t get! With rates more competitive than ever, if you are on a variable rate, simply call your bank and say “I have found a better rate from provider X at X%, are you able to give me a rate review to match that?”. A match may not be possible, but there is a good chance your rate will be reduced, potentially saving thousands annually.
2. Cancel those subscriptions you barely or don’t use
This is an easy one. Go through your last quarters bank statement and credit card statements and highlight the subscriptions. Challenge yourself on whether you need them.
3. Pay off your expensive debt
If you have a credit card debt or other expensive debt, focus on paying it off. Not only will it save you money on interest and late fees, it’ll free you up from a lot of stress.
4. Meal planning
Plan out your week of meals and shop to suit those meals. This is beneficial both to reduce wastage, but also stop those midweek dashes to the shops that end up costing as much as a weekly shop. Being organised also gives you back time.
5. Freeze a few meals to avoid takeaway
There are always those days you’re too exhausted to cook. Put some curry or spaghetti bolognese in the freezer to avoid spending a small fortune and delivery fee on takeaway.
6. Sell the stuff you don’t use
We all have things lying around the house taking up space that aren’t used. Do a whip around the house, find them, then put them on Gumtree or Marketplace and sell them.
7. Turn your trash into cash
Collect your used bottles and cans and turn your trash into cash to one of the many recycling centres. Visit returnit.com.au to learn more and find your closest recycling. This helps your pocket and the environment so it gets a big tick in our book.
There are a heap of ways to save money and get your money working better for you. Ultimately this should be your goal. How to get your money working better for you depends on your personal circumstances and range from salary sacrificing into superannuation, consolidating superannuation funds, reducing insurance costs, changing suppliers of utilities and more. Spend the time focusing on your personal finances. If you don’t have time, hire a professional. Your future you will thank you.
*Assumes 8% per annum returns