In the interest of helping Australia start saving, in March 2017, Business Insider took a look at how Aussies are spending their hard-earned cash.
As expected, the points of political contention, like electricity, gas and fuel, were highlighted, with December 2016 clocking record breaking costs of $6.140 billion.
Add that to the fact that Australians spend more on clothing than anyone else in the world, and it’s easy to see why there are so many of us living in debt, according to Vogue and ABC news.
So, as the cost of living continues to shoot sky-high, we took a look at a few things you can do right now to start saving a few bucks. Who knows, those bucks might just add up.
Before you get started, you might want to double check that you know exactly what you’re spending your money on. The Australian Securities and Investments Commission has a handy tool you can use to look at your budget. Take a look here.
Now, there are things you just can’t cut out, but we’re pretty sure that you’ll find at least three ways to start saving in this list that won’t cramp your style. Ready? Let’s dive in (to the piles of money you’re about to start saving).
- Split your money up into Must Spend and Can Spend. The can spend is your money left over once your rent / mortgage, school fees, medical, phone, energy and loan repayments are paid for. Those are your fixed costs.
The Can Spend costs are where you have room to play around. It can help to keep this smaller amount in mind when you’re doing grocery shopping, planning your entertainment and transport so you don’t overspend and use the money you need for your bigger bills.
- Pack your own lunch: We know, you’ve heard it a million times before. Packing your own lunch and cutting out that store-bought coffee are the easiest ways to start saving cash, yet, day after day, we repeat this mistake. When you’re faced with a $12 bill, or a quick $3.70 for your coffee, it looks like nothing, but it can so easily become SOMETHING. Take a look:
Bought lunch every day @ $12 = $240
Flat white every day @ $3.70 = $74
That’s amount of a little over $300 doesn’t include that sneaky second cup of takeaway coffee or your smashed avo on toast. It also doesn’t include what you’re spending on dinner, and grub over the weekend.
So, aren’t those 10 minutes spent prepping your lunch and coffee at home worth it?
You could also pair up with a colleague and bulk buy on food for work. Prepping food for one can be hard, but two is so much easier and more fun to munch on.
- If you can’t skip the lunchtime purchases, try stick to just buying your lunch and cutting out the extras like cookies (we know, we know, dessert is important. Chocolate even more so) and drinks. For the sake of being able to afford something big and really, really cool like a house, we think you can skip that lightly fizzed strawberry flavoured something cold.
- Banish temptation: If your credit card is your downfall, banish it. Put it at the bottom of your sock drawer or somewhere out of sight (and out of mind, too). If it’s for emergencies, you know where to find it. And no, a shoe sale is not an emergency. Neither is an after-work bevvy or 7 on a Friday night.
If it’s a store that’s killing your control, it’s time to plan a different route. At the risk of sounding nauseatingly clichéd, you could get in a few extra steps or check out a new part of town by missing the road most travelled.
- Get some fresh air: There are two parts to this tip, so bear with us. If you live in a relatively bug-free zone, or have decent screens to keep the mozzies out, getting some fresh air in can help cut down power bills.
To start saving money doesn’t mean becoming a hermit. While we’re talking about getting fresh air, consider moving your meet up from a restaurant or mall to a park or garden. There’s less to distract your pallet with, and you’ll be able to plan your refreshments so you don’t break the bank when someone decides it’d be ‘fun’ to share an expensive bottle of bubbly or oyster platter. Even better – get your mates to all bring some cheese and wine to someone’s house.
- Put a bucket in the shower: No, we’re not about to tell you to start multitasking and doing your laundry while you shower, but we can suggest using the water you catch to flush the loo or water a few plants. Mother earth and your wallet will thank you.
- Heat things up: Bringing your air-conditioning up by one or two degrees can help you cut a few dollars off your bill (around $120, according to Adelaide Now). Maybe it doesn’t need to be at an icy 19 decrees. 22 and a layer less on your bed might do the trick.
- Use what you’re paying for: Are you paying for cable, internet and Netflix? Cut one, use the other. You can only watch one thing at a time anyway, right?
- Smoking.
- Look at how you loan. Before you reach for your credit card, consider getting a short-term personal loan to cover any unexpected costs you may face. You could also look at consolidating all of your loans with a consolidation loan so you’re paying off one amount at a set interest rate or fee. Sometimes, those short-term loans can be paid out in the same day giving you instant cash to cover your sneaky expenses before you start racking up penalties, late fees and extra interest.
- It’s been said that we don’t stop liking our clothes, we just get a little tired of them. Doing a seasonal or mid-season clothing swop with your besties could curb the need to buy those few extra things that will ‘make your wardrobe complete’.
- Move your meet-ups. Going for an earlier meal, like breakfast, brunch or even lunch, is often way cheaper than meeting up for a dinner. Besides, we know you’d rather use your evenings for a little Netflix and chill or quality time with your someone special.
- Learn to cook – look, we didn’t say you had to be boring, you can drink a little wine while you get to know the ins and outs of your kitchen, honing your culinary prowess in the meantime. Besides, the better you get, the more you’ll want to take the leftovers to work for lunch and… the more you’ll start saving. Just take a look at Donna Hay’s website – we’re pretty sure you’ll be enticed to whip out your apron in no time.
- Don’t aim so high – by that we mean, look for the products that are slightly damaged or nearing the end of their shelf life. We’re not suggesting that you put yourself at risk of food poisoning, just check out the grocery clearance section at your local super market. Buying food in smaller portions (in other words, not buying in bulk) can help you start saving anyway, because you’re less likely to chuck out food that you don’t get around to using.
- Learn how to store your food properly. Just keeping your onions and garlic in the cool, dark spaces they prefer can help you start saving a few extra pennies.
- Bake (and cook) smart. We may have just told you to try out a few extra recipes, but do it in a smart way. If a recipe calls for you to buy something you wouldn’t typically use, and doesn’t use up the whole amount, find a way to use the rest so you don’t end up throwing it out. Foodwise has a host of recipes, and you can search based on the ingredients you have, like coconut milk or almond meal.
- Grow your own: If you find that you’re chucking out a lot of veggies because you just don’t get to use them, try growing your own. It’s kinder on your wallet, and that green-thumb feeling is unlike any other. Food just tastes better when you know you’ve grown it yourself, don’t you think?
- Don’t let your eyes be bigger than your stomach: What? Never heard that saying before? Simply put, dish up portions you know you’ll eat, and get more if you need to, rather than dishing up and ending up throwing the bits you don’t eat away. We’re meant to be packing leftovers for work lunch, remember.
- Sell it! If you’re always tripping over that extra rug, or bashing your shin on the chair in the corner of your room, maybe it’s time to get rid of it. While you’re at it, add that Xbox you haven’t touched in 3 years to your Gumtree ads and put that extra cash to good use – to kick start saving and get an emergency fund going.
- Stop wasting time. If you get paid by the hour, or could get paid by the hour, start tracking your time and find ways to be more efficient so you can use those extra hours to make a few extra bucks. More here.
- Find some inspiration: Whether it’s a DIY craft that will start saving you a few bucks, or just some evidence of another human living on a budget, you’ll find loads of advice and inspiration online. Stay at Home Mum is a blog turned lifestyle website that shares heaps of quick tips and tricks to start saving time and money. Sink your sorry eyes into this feast of good ideas.
- Get some professional help: Whether it’s to track your finances or find ways to cut your costs, there’s a whole industry founded on cash cutting that’s waiting to help you out. There are apps, like ASICs MoneySmart TrackMySpend app that can help you find out exactly where those extra bucks are bouncing off to each month, and financial advisors ready to walk you through the ins and outs (and terminology) of the financial sector to help you get clued up so you can start saving in no time.
If you feel that your spending it out of control, a Debt Councillor or Negotiator can help you get back on track by helping figure out your finances, from your court.
- Take the challenge: If this is all sounding a little like a list of things your gran would tell you to do, ignore it. Instead, see if just challenging whether you really need something will help you spend a little less. While you’re at it, see how long you can go without spending a cent of your ‘can spend’ money. We made it to 14 days.
- If it’s motivation that you’re after, and seeing a few extra bucks in your account at the end of the month isn’t motivation enough, set yourself a goal. A holiday, or better, a house to keep you on track is always helpful. ASICs MoneySmart app also has a TrackMyGoals feature that can help you keep track of your money and start saving and cheer you on towards your goal.
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