Nope. Saving is never easy – no matter who you are. We all struggle. Yes, it is just so tempting to forgo cooking and order meals on UberEats! Or, go a little overboard with that mid-week grocery shop. But, what is all that unnecessary spending doing for your savings? Not a lot – to put it simply. We don’t usually realise how much we have actually spent on incidental goodies until we really sit down and think about it. If the reality of saving seems a bit daunting, then don’t worry, you’re not alone.
That’s why we have experts! Saving tips are a dime a dozen, so we gathered unique perspectives from 3 different saving experts to give the lowdown on how to grow our savings account.
ASIC’s Top Tip For Getting Your Money On Track
Change One Habit And Save
You may think changing one habit might not move the needle, but the experts at ASIC disagree! Changing just one thing that you do regularly could be the first step in learning how to save. Here are just some examples:
Cut down on coffee purchases
A hard one – we understand. We aren’t suggesting you give up on coffee drinking altogether. Why not tell yourself you are going to spend money on coffee two days a week instead of five. Say a coffee costs you $4.50 minimum. If you cut down on buying coffee just three days a week you would save yourself $13.50. This might not sound like a whole lot in one week, however, over a year, you could save yourself $702. That’s a lot of money!
If you’re looking to take your saving to the next level, why not invest in your own coffee machine? You can pick up a good quality Nespresso coffee machine for around $250. 150 Nespresso pods providing you with 150 coffees will cost you around $120. Purchasing your own coffee machine is much more convenient as well as the fact that you’ll save yourself some serious dollars.
Make your lunch at home
Why not try making your lunch at home instead of purchasing it at work every day. Buying lunch may not seem super expensive at the time. However, if you’re spending $12 on sushi five days a week, you’re effectively spending $60 a week on lunch alone! Imagine what you could get at the supermarket with $60.
We get it. Buying lunch is so much easier. Not many of us have endless amounts of time in the morning to spend creating a gourmet lunch. So, why not meal prep? Meal prepping is an awesome way of making sure there is always something in the fridge to grab on the run. Cooking meals that are easy to freeze is a great way to ensure there is no excuse to reach for your wallet when you’re feeling hungry.
No more credit
Purchasing on credit can feel like an awesome idea at the time, but remember, it all has to be paid off at some point. If you’re serious about saving, it’s a good idea to lock up your credit card and try paying only with cash. If you want to keep your hard-earned dollars in the bank then you’re going to want to keep track of what you’re spending and accrue as little interest as possible.
It’s hard, and it’s extremely tempting to tap and run because ‘you’ll pay it off later’, right? But, try considering this – if you can’t afford it right now, then wait until you can.
It’s easier said than done, so, be kind to yourself. A treat every now and then is definitely okay. But, eyes on the prize. Remember why you are saving. Maybe you want to travel. Or, maybe you want to buy your first care. Or, perhaps you want to purchase your first home. Every single dollar counts, so, be savvy with your cash. Work smart, not hard and remember that credit isn’t always your best friend.
Top Tips From The Barefoot Investor
If you haven’t heard of the Barefoot Investor than you must be living under a rock. Scott Pape is one of Australia’s most well-known investment advisors. His fresh and realistic approach to saving money has inspired millions of Aussies.
In many of his blogs, Scott discusses the fact that ‘the things he knows now, he wishes he knew in his 20’s’. The power of hindsight! So, here is an overview of the Barefoot Investors ‘Tips to Set Yourself Up in Your 20’s’
Fancy Shoes, Sports Cars & Million Dollar Mansions
The Barefoot Investor tells us to be carefully with what we believe. Those friends that seem to have it all. The fancy clothes, fast car and million dollar mansion are barely keeping their head above water. If they weren’t already broke, they will be by the time they hit 40 because they are wasting their money on ‘worthless junk’.
Invest In Quality Not Quantity
‘The key to long term wealth is buying the right stuff’. If an opportunity to invest in something solid and worthwhile presents itself then you should take it and run with it. Assets that compound in value over time are always a good choice.
Doing Nothing Is Still Going To Leave You With Nothing.
If you want to make something of yourself, go out and do it! Nothing happens while your sitting on the couch watching Netflix. You need to make it happen – believe in your own success.
Get Your Credit In Order
Your credit score could come back to bite you! It’s very important you get it sorted before you turn to the bank for the big loans you are going to want. As much as we hate to admit it, the big banks need to be able to take you seriously.
It’s Time To Crush Those Bad Habits
Putting everything on credit may seem like an easy fix when you’re young. But, the consequences can leave you reeling for the rest of your life. Don’t create problems that future you is going to have to clean up!
Learn From Your Elders
Listen to your elders people. They have been through it all before. What they have to say may be very valuable. ‘It’s easier to learn from someone’s mistakes than to make them yourself’.
Spend Your 20’s Learning & Your 30’s Earning
Your 20’s are for the mistakes – that you learn from of course. Live it up and make the most of your youth – but do some serious learning along the way because what you learn in your 20’s will help you to earn big in your 30’s.
No Reward Without Hard Work
There’s no such thing as a four-hour work week. No one ever got anywhere in their career by watching Netflix. You need to work, work, work for it!
It’s All About Those Connections
Make connections with people that will open doors for you – no matter who they are. Get out there and make friends with some powerful people. These connections could come in handy when you least expect it.
Why Not Do What You Love & Love What You Do
Making your passion into your profit is a huge tip! If you can dream it, you can make it happen. Don’t waste years of your life, that you’ll never get back, doing something you know you hate. Start small and build – you never know what might happen when passion and hard work collide.
Buy A Cheap Car
Cars devalue as soon as you drive them out of the dealership. That’s the reality of the situation. Although it may seem like an awesome idea at the time, a monsterous loan repayment is going to do absolutely nothing for your future but land you in more debt.
It’s Easier To Save When You Have Nothing
No, as surprising as this might seem, just because you earn more doesn’t mean you will save more. Saving is a character trait, it has nothing to do with how much money you earn.
Friends Who Borrow Money Aren’t Giving It Back
Your friend needs some cash but promises you’ll be paid back. It almost never happens. The reason they are borrowing money is probably because they don’t have any – so don’t expect to see your $500 again anytime soon. But, don’t let it ruin a friendship. If you want to lend them the money do it. If you don’t, they don’t. It’s as simple as that.
Friends & Family Are Much More Important Than Money
No one ever asked how much money was in their account on their deathbed. Ever. Family, friends, happy memories and experiences are all we take with us. So, try and focus on what really matters and enjoy life!
Not Much Really Matters
Most of us are guilty of worrying excessively about things that will probably never, ever happen. So, don’t waste your time and energy when you don’t need to.
Why Should It Be Any Different For The Girls?
Women and money. An age-old debate and a major cause for concern as we head into 2019. Are the women of 2019 entitled to the same pay as a man in an equal position? Ellevest has recently given us the ‘5 Financial Feminist Resolutions for 2019’ and some of the stats are absolutely shocking. I bet you didn’t know that it will be 38 years until the wage gap closes for white women, 106 years for black women, and 230 years for Latina women. Shocking isn’t it.
The article also goes on to discuss the fact that most women would rather talk about death than money – crazy! Bet you didn’t know that women are 80% more likely to be impoverished after they retire.
These statistics are crazy and the fact that we don’t talk about them is even crazier. So, let’s make 2019 the year that more women become aware of how to save and why they should do so!
Have The Money Chat
Chat about money with your friends, family, daughters, sisters. It is important that we keep talking with our partners, parents and even our friends. Money shouldn’t be uncomfortable, not even for women.
Ellevest’s 5 Financial Feminist Resolutions for 2019 tells us ‘it’s crazy because 90% of women manage their own money at some point in their lives. And because financial infidelity is a very real thing. And because divorce affects women’s finances more than men’s, and having greater clarity about family finances can help lessen the blow.’
Financial Feminism In 2019
Women and money shouldn’t be taboo. It shouldn’t matter who you are. Anyone and everyone can use some of Ellevest Financial Advisor SJ Abrams’ on raising financial feminists. It’s not just the girls who need to be educated, it’s the boys too. We need equal opportunity, regardless of gender. Knowledge is power. So let’s start talking.
Change At Work
Work is where we earn our money, therefore it needs to be where we begin to change. Things need to be better for women in the workplace. If you can speak up at your workplace, then do it! Speak up for whatever you can in whatever capacity you can do it. Advocate for equality, paid family leave and equal pay for women. Wherever possible.
Back Women In Business
Where and what we spend our money on makes all the difference. Choose businesses run by women. This will make all the difference. Choosing to spend our cash backing other women is one of the most powerful ways be can show women in business that we support them.