A recent report released by ME Bank showed that 34% of Australians were worried about the amount of cash savings they had on hand. Surprisingly, 40% of households admitted to spending their entire monthly income, leaving no room for savings.
Saving can seem like an impossible task, especially if you’re currently spending a large portion of your income, but by implementing these 8 simple lifestyle changes, you’ll be able to save thousands each year.
When was the last time you reviewed bills such as your phone plan, your car insurance or your electricity plan? Regularly reviewing your bills can save you hundreds. Ring your providers or get new quotes online and ask them what they can do for you. Don’t be afraid to let them know that you’re willing to change providers, loyalty doesn’t always give you the best deal.
Do you really need that monthly subscription box or that magazine? Did you remember to cancel that trial service? There is a wide range of subscription services available, but even $10/month can quickly turn into hundreds each year when you have multiple subscription services. Check your bank transactions to make sure you’re only paying for the services you are actually using.
There are many ways that you can earn money outside of your usual wage. Earning extra income can help you have a bit more of a buffer in your budget and allow you to save money quicker. Tasks that you could do include things such as:
- Babysitting or pet sitting
- Dog walking
- Medical trials
- Professional services
- Selling unused items or re-selling
- Rent out items or spaces
Remember any extra income needs to be declared with the ATO. Speak to a professional for more information.
Everyone loves a sale, but make sure to use them to your advantage. Don’t buy something just because it was on sale and you ‘needed’ it. Learn to use sales as a way to pay less for things that you genuinely do need. Every industry will typically have a time when things are cheaper, this may be the end of the financial year or end of the month. Learning what this time is can save you big bucks.
For large purchases like vehicles, shop near the end of the month. Many companies have sales targets and if they haven’t yet hit that target you may be able to haggle down the price. It never hurts to ask “what’s the best price you can do?” Buying your clothing at the change of seasons means you can usually score a bargain as well.
One of the biggest areas a lot of us spend in is food. There are many tricks you can use to spend less on your groceries. Meal planning, buying in bulk, shopping the specials, shop in season and even having one meat-free day a week are all ways you can try and reduce your grocery spend.
Paying interest is lost money. If you have a mortgage, make sure to speak to your bank or broker to see if you can reduce your interest rate. Over the lifetime of your loan this can turn into thousands of dollars saved. When it comes to credit cards or personal loans, the quicker you can pay it off, the less money you’ll be spending on interest.
An easy way to save money without even noticing is to use roundups. Many banks have a feature where you can round up your purchases to the nearest dollar and then use this money towards a savings account, micro-investing or superannuation. It’s likely you won’t even notice the small amounts, but over time it can really add up.
At Fairvine, we offer RoundUps that help you save into your superannuation. Over time, something as small as $5/week can turn into over $17,296. Imagine the extra money you could have in retirement; your future self will thank you while she’s sipping cocktails by the pool.
Salary sacrificing money into your superannuation pre-tax can help reduce your overall tax paid. Even $20 per week can save you $239 in tax as well as put $1,040 into your superannuation. This $1,040 over time will grow to more $4,500 by the time you retire.
Author: Nataasha is a money-saving millennial from Queensland. After years of struggling with her finances, she turned her life around and became debt-free in just 12 months. She documents her debt-free journey on her Instagram and blog, www.tashagetsfrugal.com
FairVine is a super fund designed for Australian women. Currently, superannuation is not delivering results for women, who typically retire with almost half the super of men. We’re looking to level the playing field and close the gender wealth gap.
At FairVine, we empower women to take control of their financial present and future. We provide practical solutions. We inspire, motivate and encourage women to make changes to their financial situation.
FairVine listens to what women want. If you’d like to know more, please get in touch. We'd love to hear from you!