Episode: 5 – Helpful tips to save MONEY!!!!!
Today we are going to talk about my top seven (7) tips for saving money. Now, a lot of people out there try to save for various things but in particular people trying to save for mortgage, for house or for block. What has been happening lately is that the banks are getting a lot tighter with their lending and so it is forcing people to save a whole lot more money. So how do you save more money?
Here my seven (7) tips:
Change where you live
- Sit back and look at where you live. If you stay at home great, stay at home with your parents as long as you can. That is the best place for you to live while you’re saving.
- If you are in an apartment maybe assess the size of the apartment. Can you downgrade the apartment? Does it have to be so big? Can you change where you rent? Things like this really help.
- Find a roommate. Imagine if you are paying $300-400 a week rent just on your own. If you find a roommate that could slash in half that is a massive saving.
Cut out unnecessary or luxuary items
- Going out for dinners. Now, you can get out for dinners Friday, Saturday and Sunday night. You can spend $100 or $250 a night two nights a week. That’s $450 you can spend on just going out for dinner. Then imagine if you went out to the shops bought a $450 of groceries that would be enough to last for covering three people for a whole week.
- Wash your own car. How many people we are seeing in a car wash watching their car while sitting have a coffee? If you want to save some money just wash your own car.
- Pay TV. How many of you down there have Foxtel? A lot of people pay for TV, and pay for the subscription. You really do not need them, there are lot of fun stuff out there you can find online for free or even you got from TV or even read a book.
- Buying new clothes. You walk into your wardrobe and looks like you know what I have always got clothes here with tags on them, you never wear them. Think about do you really need this new clothes and just bear of what you really got.
- Cut down the alcohol. If you drink quite a lot your weekly or monthly bill on alcohol can add up to quite substantial amount. You probably sitting there and thinking what did you say that for and then the girl sitting beside you say “see I told you to stop drinking” but on the flip side girls what you used to do? You get your hair done, you go to the beautician or salon. All of this top things and stuff that add money too, don’t worry its look beautiful without that sort of stuff.
Pay off your debts
- You would love to try to reduce your interest as much as possible. The quicker you can reduce your interest that money you spent paying interest you can then put toward your savings.
- Personal loans and credit cards. A little tip for credit card if you have been with the same bank for 10 or 15 years and you have the same credit card over time you have subscriptions, magazines, gym subscriptions all these things accumulate up over time. You may not even realize some things that actually coming out of your credit card and there could be so many and these could be so time consuming. So, it might able a good idea to change banks or change credit card and pay off your old credit card. What will happen is everyone will start letting you know that your credit card expired and you change the details and you’ll start to find out how much things are actually coming out from your credit card.
- Maybe you should just sit back and actually say this yourself “what you actually make?” Don’t think about it – write it down. These things are no good in your head… you need to actually write them down.
- Write down all your bills. Everything that is going to cost you from bills and even wrote down your food and your general living expenses.
- Then you have to work out what is left. Now, this can be obviously be put aside as savings or anu money you need for anything else.
- For insurances you got your healthcare, car and house. Now, do not just think because you have the same payment with the same insurance for five years, for one year when you get your renew do not just be like “you know what I will just pay it forget about it.” Shop around because you will be surprised what you can save. A couple percent, even 5%, of those insurance you could save yourself $100, $200, $300 or even $400 per year per insurance that you actually have.
Sell your stuff
- I know I do and I believe everybody out there has so much stuff that do not need. Have you walked into wardrobe and like I got a lot of stuff. Have you even driven to garage or maybe you cannot even drive into your garage because of that much stuff. When your garage become a storage room? You will be surprise that if you will have garage sale, how much stuff you could actually sale or how much money you can actually make? Also there are other places like eBay and Gumtree where people are selling things on a daily basis.
- Just simply say “No”. Now, you may have a lot of friends every week they ring you up “you know sally let us go out for a drink”, “John let us go out for a drink”. You just got to say no because going out for a drink leads to dinner, leads to drinks and every single night you going out spending money in all of this kind of stuff. You just got to have to get to a point where you have to say “No”. And be “No” which is ultimate goal is because in the end you got be going in every single day of the week spending the unnecessary money.
SET A MONEY GOAL
Get a dollar figure that you actually need. Write the figure down whether it will be $10,000, $50,000, $60,000 whatever you need write that figure down.
If you find it hard to start just start like this:
- Write down everything you spent in a month
May be for the first month do not change anything. Just write every little thing whether it is bills, expenses and luxury items. Everything you spent on that month write down on a piece of paper. By the end of the month you can assess some of the things on there you might actually start savings before you even dive in deeper.
- Cut out what you don’t need
May be you can start cutting a lot of things that we just talked about. Cutting you do not need things “I do not need these things” “that is unnecessary” my goal did not realize how much I spent on that one particular item.
- Track every month
Then the next month do the same thing again. Start tracking how you are doing because you might be doing this is harder or you might cut it out completely. Do not cut it all out, cut it out slowly because if you go to dramatic then it won’t work. So you might want to ease in by cutting out only certain things.
- Evaluate monthly
Evaluate how you are going.
- How much you spent?
- Were you able to save anything last month?
- How much you have saved last month?
- Am I saving enough?
- Do I need to save more?
And the ultimate I want to get to the end result I want that figure I need.
- Find a partner
You do not need to do it on your own. There are many people (i.e. your partner). Go out there and tell them what you are doing or get them on board you can actually do it together. If you are saving on your own, a helpful hint may be to find someone that you could be accountable for. Sometimes you might struggle, and people work better when you have people accountable to. Either your brother, a close a friend, a sister, mother, dad, anybody.
Go out there and say “listen this is what I am doing my goal is X dollar amount, what I am going to do that? I am going to cut this and this”. Report back to them monthly because that hold them accountable for it. And every day you will be like I have to answer this person. Ultimately you do not have to do it alone.
I’d love to hear in the comments below what you are saving for, and if you have any other tips that you can help people with.