Back to the Basics of Saving

Posted on: 04.07.2016

Re-occurring Expenses

In today’s highly competitive Fuel and Grocery markets it is easy to save a small fortune.

For the majority of us, Fuel, is a weekly expense that fluctuates quite rapidly. With the new 7-Eleven fuel app, you can keep an eye on fuel prices and lock it in when it’s low (for a 7 day period). This way you can fill up when it suits you and still get the best price for the week.

For all of us, Groceries are a definite re-occurring expense. The big stores like Aldi, Woolworths and Coles all have there draw-card-products. These are products or items that are priced considerably lower than their competitors to bring in customers. The point being, with a little research you can save a lot by finding which stores draw-card-products fit your needs and shop accordingly.

Habits

One of the easiest ways to control your spending is to research a realistic cash withdrawal per week for yourself after all bills, rent and re-occurring costs are deducted from your pay. Take this cash out on a Sunday or Monday morning and have it as your leisure money for the week. DO NOT WITHDRAW MORE!!

Another healthy finance habit to create is additional super contributions. $10 or $20 a week should be an easy salary sacrifice for most people to set up as a re-occurring direct debit to your super fund. When the time for retirement comes it will be worth much more to you then than whatever you would of splurged out on and purchased now.

Teach kids the basics of saving

If you have children, there couldn’t be a better time to help them understand the value of money management. The classic household tasks for pocket money is perfect. The key is to have the amount earn’t for each task set very low, leading the child to think twice about what they’re purchasing and develop self-control to save for their long-term larger item (bike or scooter etc.) rather than blowing there money on impulse buys like service station lollies or small ticket items.

Good luck with saving your money and we hope this helps you on your path to financial freedom.

If your in the process of saving for your first home it might be worth getting Kirsty Gray from our team to contact you for a friendly chat about your goals and how to optimize home loan savings.