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5 Ways To Save Some Extra Bucks

5 Ways To Save Some Extra Bucks

Tags: Tips and Tricks
Last updated by Someone on

If you’re like me, you have many things competing for financial priority in your life. 

I know I should be saving more but it’s hard when the bills just keep coming in.

I guess I’m doing better than most in that I don’t own a credit card. I sensibly got rid of them all when my marriage broke up. This hasn’t stoped me from borrowing money over the years for things like home improvements but at least the interest rate is cheaper.

It’s important to understand how you use money in order to be able to stop reaching for the wallet. Here are some things that work for me:

Think About Purchases in Terms of Your Values

Does this expense make sense in terms of my goals? When those ads pop up on Facebook or I hear an ad on the radio for some new product I ask myself “will buying this item help me pay off my house sooner?” Almost always the answer is no.

That’s why it’s important to identify your priorities. If your priority is retiring early or traveling more, make sure you are not tempted by a sale at your favorite store or some new gadget. Instead, stop and remind yourself of where you actually want your money to go.

Don’t Be Afraid to Just Ask

I’m not great at asking for a deal. My best friend Suzie loves it, much to my embarrassment. Still, I can’t argue with some of the great deals she gets just because she spoke up!

But ask the right way. Always with a smile and always acknowledge the discount with a thank you.

I recently had to purchase a $20 item on line and I was having so much trouble with the vendor’s website. I rang the business and they ordered it and posted it for me,  free of charge! I was so grateful.

Buy High-Quality Clothes on a Discount

In my single days I used to shop at high-end stores for beautiful work suits and trendy clothes. Now that I’m a single mum, I still have to present well for work but without the same disposable income.

I had a look in my local Vinnies op shop and was amazed at the deals. I found a really cool pair of work shoes in near new condition for $5!

Think of Saving Money in a New Way

When you owe money, it shows up as a negative on your statement. For example your credit card will show a balance of -$2500.

If you think of your savings goals in terms of negative numbers also, you’ll find yourself in a race to get to zero. ie: If I’m trying to save $1,000, it’s -$1,000, and if I save a $100, then it becomes -$900 instead of +100. Make sense? It’s all about tricking your mind.

I owe one of my kids some money and he owes me rent each month. We’ve set up a shared spread-sheet showing the amount I owe him, minus the $100 each month. I’m watching the amount I owe him decline and that feels great.

Be Aware

Learn to say “no” to yourself. Managing money takes discipline and even though you might think you work hard and desserve to be spending money on yourself, in the end you’re actually only hurting yourself when you don’t have any savings later in life.  

Share your tips for saving below in the feedback section

Originally posted on .

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Gertraud
Gertraud from ACT commented:

Time to draw up a budget! It doesn't have to be complicated, mine is very simple and covers the regular bills for insurances, rates, water, electricity, gas, NBN, mobile, car services, NRMA subscription, etc. It does not include fuel or groceries and discretionary expenditure. To set it up, simply calculate the annual amount of the bills, add 10% and divide by 26 (or 52 if you are paid weekly). My budget spreadsheet shows last years expenditure against the fortnight when the bills are due to be paid. Every payday 1/26 of the annual amount is paid into a special account - if possible use a mortgage offset account. As bills are paid, I adjust the amount on my spreadsheet to the actual amount paid, to track the expenses and the updated amounts form the budget for the following year. With each pay increase, increase the amount put into the budget account as well to keep pace with increasing expenditure. 

Robert
Robert from NSW commented:

It's not about saving a few extra bucks - it's about discipline and saving some bucks fullstop. Draw up a budget, ( mine is monthly for the year ahead so that I know which bills are coming up and for about how much they will be ) and include every item you spend money on - no matter how small - and make sure you include a regular savings amount. Except for a small monthly allowance for coffee etc I put every expense through my CBA credit card so that I have a record of where the money goes, and I accrue "awards points". I pay off the full amount every month so that I don't pay any interest. Stick to the budget. If your total budget expenses are greater than your income, change your budget by cutting back on some items. A budget and discipline is the key; you'll be amazed how your savings grow.. 

Lyn
Lyn from VIC commented:

I only use my credit card if I have to e.g. paying for memberships on line or for travel bookings. I always make sure I pay it off in full. How do others avoid using a credit card in the above circumstances? 

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