At any give time most of us are saving money for something but often the biggest is figuring out how to save more than ever before.
It might be a deposit on a property, school fees, a new car or a holiday, saving is hard work. Here’s a few practical tips that might help you kick start your savings in 2017 and do it better than last year.
1. Skip one $20 purchase every week
This could mean skipping your daily coffee, a lunch or a night of takeout, but it will save you $80 a month and $1,000 a year.
2. Try and slash your essential bucket by 10 per cent
For many of you the big items in the monthly budget are the mortgage, groceries and utilities.
These can be hard to cut, but it is possible. Have you reviewed the interest rate on your mortgage lately?
Are you menu planning before your grocery shop? By being really aware of each dollar you spend on essentials, you may be able to cut your spending by more than $2,000 a year or more.
3. Try a financial fast
This is about not spending at all in a lifestyle category for a quarter, but it could be that you stop buying clothes or decide not to eat out each week… and the savings will quickly add up to hundreds of dollars a week, and save you more than $1,000 over a quarter.
4. Stop using that plastic!
Many of us are shocked when our credit card bill arrives each month, I know I often am.
So, I’d like you try not to use your credit card at all for a month.
I know there will still be some direct debits that come off it, but you will be overjoyed when your bills come and you can move money into your savings account rather than your credit card for the month.
5. Audit your direct debits
Are you still reading the online newspaper you subscribe to? Using your gym membership that is direct debited each fortnight? Watching Foxtel? Direct debits can creep up on you.
So, go through your bank statements and unsubscribe to all the things you are not using.
Just by making some small changes you could save yourself at least $5,000 a year, this could mean you can afford that overseas holiday you thought would only ever be a pipe dream!
