March 2020Read article
Life can get in the way of our savings goals sometimes, but that's okay because we still need to enjoy our day-to-day lives.
There are plenty of little changes you can make to your everyday spending to still live your life, while saving towards your goal.
We've put together our top 5 tips to help you save money in the simplest way.
1. Create a budget
The first thing you need to do when you're looking to save money, is to create a budget for yourself, which you can do in a simple spreadsheet or through a budget planner calculator.
You'll want to keep track of all your income and expenses. List down how much you get paid and when, then from there budget out your costs such as:
- Rent or mortgage repayments
- Public transport
- Any insurance costs
- Medical costs
Basically, you'll want to list out every cost that comes out of your account, including the coffee and lunch, right down to those chocolate bars for your 3pm snack at work.
Having a budget means you can allocate the appropriate funds to your expenses and towards savings. For example, you could give yourself a budget of $20 per week for takeaway coffee and bring the others from home.
So long as you have everything listed out, you can see where you can cut down or allocate specific amounts to stick to. That way you can aim to have a portion of your income allocated to savings that you can pop into another account.
2. Check your expenses
While you're doing your budget, look at what expenses you could cut down on. Perhaps you may be subscribed to multiple TV streaming services. Do you really need two? You could potentially remove one.
Go through what is coming out of your account and think about whether you need it versus whether it's nice to have, as well as things that might be costing you more than you expect.
Eating out for example could be something you need to ease up on. When you see how much money you spend out or on UberEats, you tend to reassess your food spending habits!
Check through your bank statements with a fine tooth comb and see what you can easily drop to help yourself out.
Some other things to review for cheaper alternatives could be:
- Gym membership
- Electricity providers
- Gas providers
- Phone and internet
You can also think about cutting down on the use of heating and cooling (if you can tolerate it) as this can drain your bills. Have a look at your appliances too. Are they old? Should they be replaced with more energy efficient options? Investing in better appliances might cost you in the short term but you could save overall in future.
Have a serious think about these costs and where you could potentially save or cut down.
3. Set a savings goal
You can't save unless you have something to save towards. We all need motivation!
After you've worked out your budget it's important to set yourself a savings goal and timeline for it. Setting a goal will give you a sense of accomplishment once you reach it as well and make it feel just that bit better.
Once you've reached your goal you can always increase it as well and continue to save even more.
4. Set up a savings account with interest
Savings accounts are great to help you save. They're a great way to put money aside to save and earn interest if you select the right accounts with interest benefits. Just make sure you don't dip into them or you can reduce or forfeit your interest for the month!
Once you've sorted out your budget, you can set up automatic payments to transfer to a savings account when you get paid. This way, you don't get a chance to even look at the money you allocated to savings and can avoid the impulsive temptation to spend it on something else.
You know what they say, out of sight, out of mind.
5. Change up your grocery shopping
We can all get into the habit of buying brands we know well or have grown up with. These days, there's plenty of equal quality options that are cheaper than you would expect.
Aldi for example is a big chain supermarket alternative where you may get cheaper products in bulk of similar quality if not better.
If you don't have access to an Aldi, you can simply shop around at your local supermarket and try cheaper alternatives or do some research online.
You can also shop purely for products on sale. Groceries are essential but there's definitely ways to maximise your savings when going to the shops!
There are endless ways that you can save money, you just have to put your mind to it. Set a goal and stick to it and you'll reach it in no time.
If you have big savings plans or somewhere you want to be in the future, it may be worth setting up an appointment with our friendly Financial Planning team who can go through your financial situation and provide you with expert advice.
Good luck on your savings adventure!