Do you spend unnecessarily? How many coffees do you buy a day? It’s these little items that add up at the end of the week. But, there is hope!
For those of us that need this, or must have that, we often think that we can’t change our ways because it is too difficult. Simplifying and organising everything is the answer!
Below you will find a number of ways that will help you curb those extra bills and become a more budget-conscious consumer. Continue reading to continue saving!
STEP 1. START WITH THE GROCERIES
Because of the big three expenses (housing, car payments and groceries) the groceries are the most flexible and it’s easy to save money on the groceries.
You also see immediate results, which can be an important motivational boost. And it feels less like deprivation – a good way to ease your way into becoming more thrifty.
PLANNING is the first important step to saving money on the groceries. Planning ahead what you’re going to eat at each meal, writing out a shopping list and sticking to it when you shop will save you significant amounts of money when you shop.
You don’t need to plan with the precision of a military campaign. A menu plan is simply a list of meals: a few ideas for breakfast and lunch will suffice and 7 nights worth of dinners. You can allocate those dinners to a particular night, or choose a dinner from your list each day.
STEP 2. NO-SPEND MONTH CHALLENGE
To start a no-spend challenge, agree what expenses count as necessary expenses and what counts as stuff you don’t really need. Bills, groceries, rent, debts, fees – that stuff counts as necessary expenses. Spend on the necessities, avoid the rest.
As part of your no-spend month, whenever you don’t spend, write it down. Become aware of where your money goes. Then do a few calculations.
We’ll use the example of takeaway coffee, because it’s a common expense that adds up, but do this exercise for all the discretionary expenses you say no to this month.
STEP 3: BECOME A SAVVIER SPENDER
Now that you’re more aware of where your money goes, it’s time to get creative with how to meet your needs and wants in a savvier way and save money.
On the weekends, my friends take the kids to the beach. They pack their own morning tea so that’s a fun morning outing for the family for free.
They do love their coffee though. Instead of spending up to $5 each for a cup of coffee, they pop into the service station on the way and get an 80c cup that they say is just as good as the expensive stuff. Not only that, they can drink their coffee in peace in the car with the kids are strapped into the back and diverted.
My point is, they’re not depriving themselves, and they’re not feeling deprived. They have found a savvy way to meet their wants without spending a fortune. A trip to the coffee shop for the whole family can set you back around $30 or more, and it’s in no way relaxing and enjoyable with toddlers. Their solution is a win all round.
STEP 4: GO FOR THE BIG WIN ON THE BILLS
So far, we’ve looked at gaining immediate savings. Now we’re going to go for the big savings that pay off in the long run and we do that by negotiating a better deal on our bills.
If you’re not negotiating your bills every year, you could be putting hundreds, if not thousands of dollars into someone else’s pocket when you don’t need to.
So it pays to shop around each year and take the time to compare prices and get a better deal on your bills.
Then, once you have a better deal, take steps to reduce your bills.
STEP 5: CREATE A SAVINGS PLAN
To create a savings plan, divide your bills into the number of pays you receive. For example, if you get paid fortnightly, and you pay your car registration yearly, divide the rego amount by the number of fortnights left until it’s due. If you pay your phone bill monthly, divide it by 2.
Do this for every bill and then add up the amounts. This is what you need to be putting away into a separate savings account each payday to cover the bills.
As part of your savings plan, don’t forget to save for emergencies.
An emergency fund is a separate savings account to cover the unexpected financial upsets in life. Car motor blown? Unexpected medical bill? That’s what your emergency fund is there to cover.
Build an emergency fund the same way you would your savings plan by automatically transferring a set amount each payday to a separate savings account.Get On Top Of Unnecessary Spending! Click To Tweet
It’s not so hard, right? By following these simple steps, you can get on your way to building that rainy day nest egg. Go from spending to saving overnight, just by changing the way you think about money.
Remember, organisation and preparation are the keys to saving.
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