How to reduce your expenses and increase your savings

Monday 16 November, 2020

Is the key to saving for a home deposit as simple as giving up smashed avo for brunch? Well not quite, but spending less and staying on top of your budget does make a difference.

Having a savings plan and strategies in place is a highly effective way of reducing or eliminating unnecessary spending. It can be easy to lose track of how you’re spending your money, especially with cashless payments, credit cards and buy now pay later options. Here are a few of our suggestions when it comes to saving money for the important things in life (whatever they may be)!

Understanding your spend

Many online banking apps include tools to categorise debits, make budgets and track your spending – take advantage of them.

Alternatively, try the good old fashioned pen and paper – print off your bank statements and categorise your essential and non-essential (discretionary) spending.

Find savings in the essentials

Some costs can’t be avoided – but they can be reduced. We’re talking accommodation, food and bills.

  • Consider moving into a cheaper rental, sharehouse or even back in with your parents (sorry mum and dad) – short term discomfort can pay off in the long term.
  • Stick to a food budget – meal planning, making a grocery list and buying in bulk can and will save you money on food (also, don’t go to the supermarket when you’re hungry!)
  • Shop around to reduce your bills – each year when your insurance renewal rolls around do you look for a cheaper price?
  • Use your car less – walk or ride. It’s better for the environment and your pocket!
  • Pay off your debts before the due date to avoid the added expense of interest.

Reduce common overspending

If you’re excessively buying clothes, eating out or enjoying expensive hobbies, set a weekly or monthly budget (and stick to it!). It’s not realistic to cut these out completely – we are big believers in a happy balance.

Costs that could be eliminated

Are you really using that gym membership? Do you need Netflix, Stan, Hayu and Binge? A small saving goes a long way (especially when you add up these costs over a year or more). Remember, every wasted dollar is money you could be spending on your own home.

It’s important to gain the right advice when taking the next step in your life journey. Our experienced brokers get to know your circumstances and offer the right advice for your needs.

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