Money Saving Strategies

By 30 September 2017Education

In today’s rapidly changing and fast-track world, it can be hard to save money. With inflation and hectic work-life balance, these add to the financial burden. It’s important to come up with smart money-saving strategies that not only get you by but also allow yourself to save for future investments. We’ve compiled key money-saving strategies that will help you build a better future and take you one step closer to that house deposit.

 

Go for downsizing

After a pay raise, often people tend to upgrade their lifestyle as well. It’s easy to treat yourself and opt for expensive lifestyle changes each time you get a raise. But what many fail to realise is the fact that their salary does not increase as much as their expenses do.

Instead of living in a big house, aim to downsize to a house that fulfils your basic necessities. This is a decent amount of money that you can use for other purposes.

 

Negotiate the Rent

A lot of people don’t realise that they can negotiate their rent. The best way to do it is to search the market and do the homework before talking to the landlord. This will put you in a better position and gives you a chance to negotiate fairly. In a fast-paced, and competitive market the renter doesn’t always have negotiating power, but in an oversupplied environment like Brisbane at the moment, it can be possible.

 

Homemade vs. take away

Due to long working hours and a hectic routine, it’s always preferred to eat out instead of cooking at home. Although it is an easier option, it comes with a cost. According to a report, on average, an Australian household spends about $94 a week on dining out. Think about the money saved if you start cooking at home, not only will your health get better, but you will also be able to save around $5,000 every year.

 

Get rid of barely used subscriptions

In order to save big, we tend to focus on cutting down major costs and ignore the small ones. For example, if you have a weekly or monthly subscription to a magazine or streaming entertainment service that you barely use, it is better to unsubscribe as it allows you to save hundreds of dollars as a result. The best way is to go through bank statements and see what you can cut down to be in a better position.

 

Use Public Transport

If your fuel cost and repair and maintenance of a vehicle are substantially high, it could be time to switch to public transport instead. Also consider buying a cheaper alternative such as a bicycle, which has very low ongoing maintenance costs. This decision will certainly lead to an enriched, happier, and healthier lifestyle. Therefore, always check out various commuting options to choose the most efficient one that suits you the best.

 

Separating Needs from Wants

This is one of the most critical points to consider when you are trying to save money. Everybody wants to have a luxurious lifestyle or a luxurious break from work every now and then. However, overdoing it will only increase your budget with unnecessary expenses. For example, if you or your partner books a monthly spa day or use dry cleaning services, these expenses will eventually end up costing you thousands of dollars on a yearly basis, so try to separate your needs from your wants. Record every expense and evaluate your options. If there is an expense that you don’t need but merely want for recreational purpose, cut it down.

Create a budget and stick to it.

 

Shift your mindset

A change in your mindset is all you need to change the way you live. If you are unable to train your mind to develop certain habits, you will not be able to achieve your short or long-term goals. It’s great to read tips and advice on how to do certain things, but if you don’t apply these tips in real life, then there’s no point. Change your mindset first, follow the required steps and then make a decision, as this will allow you to work on your goals and effectively reach them.

If you manage to apply these money-saving strategies on a daily basis, this will enable you to multiply your savings in just a few years.

Chat to Hunter Galloway about money saving strategies on 1300 088 065 or email Nathan.Vecchio@HunterGalloway.com.au