Have you come out of the silly season feeling like you don’t know where last years’ hard-earned cash went? Maybe you’re trying to save for a European holiday or a house deposit Rod Attrill, General Manager of Banking Compare The Market, shares his wisdom on how to cut back on unnecessary spending to save more in 2019.
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1. Split your money into different accounts.
Limit any impulse spending by distributing your monthly paycheck across multiple accounts. Create separate accounts for your bills, savings, everyday spending and splurging (e.g. holidays, eating out and other fun activities). Decide on how much you are willing to set aside each month into each of these accounts and change this amount if you get a pay rise, bonus or promotion. You can go one step further and set up automatic transfers at the end of your pay cycle so you aren’t tempted to spend a single cent more than you’ve intended.
2. Cancel all those unnecessary subscriptions and memberships.
If you’re still paying for that gym membership you never use or keep seeing an auto-debit on your card for a music streaming service you no longer listen to, it’s time to review your subscriptions and memberships. Don’t spend on unnecessary products and services that no longer appeal to you. You may be surprised by how much those costs add up each month.
3. Switch to a cheaper provider.
Whether it’s your home phone plan, health insurance provider, or car insurance, it’s important to review these services every few years to see if they are still providing you with the best value for money. Using free online comparison sites such as comparethemarket.com.au allows you to compare multiple providers to find a better price and plan for your needs.
4. Hide your savings.
Putting your savings into accounts that you can’t touch or easily view can really help to boost your savings. Why not set up a fixed-term deposit or even a high-interest savings accounts that penalises you every time you withdraw? Knowing you could be hit with an additional fee or even a loss of interest for the month may help you to stay away from using this account.
5. Plan ahead with your super.
Consider the financial impact that going on maternity leave or taking a break from work will have on your super. If your partner is caring for a child or family member, and not working full-time, they won’t be earning super. That is when a spouse or partner can make voluntary super contributions to the caregiver’s account. Not only is this a financially sound decision but it also ensures that your partner is earning money that can be put aside for their retirement until they are ready and able to head back to work.
6. Teach your kids how to save from the get-go.
It’s never too early for kids to learn how to save and manage their money effectively. Give your children incentives to earn their own money and encourage them to save for something they may want. By giving them a means to earn this money, such as household chores, and a goal they want to achieve, it will teach them how to manage money efficiently and save for the future.
7. Consider financial apps to help you save day-to-day.
If you’re trying to find ways to save up for a big holiday or just to limit spending in an area of your life, consider using apps and resources which can help you figure out how much to budget monthly/yearly to reach your savings goals. Platforms like this also provide great tried-and-tested tips to help cut your overall spending across multiple products.
8. Start a side hustle.
If your monthly salary isn’t enough to pay your bills and fund your lifestyle, why not consider becoming part of the gig economy? Perhaps moonlighting as an Uber driver or offering your handyman skills on Airtasker as a way to secure a secondary source of income. It can both help ease your financial burdens as well as give you something different to do from the usual 9-5 grind.