Saving Money - Granny's Way
Each week, the Money Saving column in the newsletter continues to have more “click-thru’s” than any other item. Clearly saving money or at least making your money work harder is something that resonates with our club members.
On the radio show this week we spoke to Rachel Smith who is the author of the book Underspent and her philosophy is simple. It’s our out-of-control spending that’s the real issue when it comes to household debt. To break her impulse shopping addiction and habit of buying ‘stuff’, Rachel set up bank accounts to replicate the jam-jar system her grandmother used, to keep cash for different household bills. She also set up a 10 week/7 Step program to help others transform their savings.
Rachel writes….
I didn’t buy anything new or 2nd hand in 2014 and saved 38% of my take-home salary. I changed my spending and transformed my savings. It started as an experiment, but it changed my life, so I kept on going. I want to help men and women who:
- Think that ‘making do’ is impossible – The biggest challenge for most men &women is being content with what they already own.
- Have zero cash – I’ve spoken to men and women in Australia, UK and the USA. They tell me that they’re working ‘flat out’ but constantly struggling to make ends meet, living off credit cards and up to their necks in debt. These people tell me they simply don’t have AUD$299 for a 10 week online program. In fact most people – particularly those on high incomes – tell me that they can’t put their hands on $100 cash.
- Think saving money is difficult – This isn’t rocket science. Anyone and everyone can save money. I didn’t buy anything new or 2nd hand in 2014 and saved 38% of my take-home salary and I did it without dramatically changing my life.
- Haven’t prepared for the future – The future is now. 45% of jobs, including high-skilled roles, are able to be fully automated in the next 5 to 7 years. I interviewed lots of people for my 3rd book ‘Be Ready. The future is NOW!’ 65% of people have no money and no plan for the future.
- Are waiting for the ‘perfect’ moment – No-one knows what the future holds. Lynne’s a prime example. She’s 48, living in a shared house. Lynne’s husband wanted a divorce. They sold the house, paid off the mortgage, cleared their debts and she was left with nothing.
- Are unhappy – Three quarters of the people I interviewed say they’re unhappy, tired of being in debt and always worried about money.
- Are too scared to speak up and ask for help – Millions of people are pretending that everything is ok, when it’s not.
- Crave social connection – Men and women tell me that they go to the shops because they’re boredom and lonely.
- Feel overwhelmed by ‘millionaire mindset’ – I’m fed up with our society’s obsession with multi-millionaires. This is ridiculous and impractical. The average salary in Australia and USA is $80,000 and £26,500 in UK. Our social media is swamped with adverts from people with fanciful propositions: ‘get rich quick’ and ‘be a millionaire overnight’ schemes! I’m disrupting all of this by offering my advice for free.
- Are addicted to getting a bargain and who are constantly carving the excitement of new ‘stuff’.
Hear Rachel's interview here
