The word “thrifty” is rarely thought of in a positive sense but that’s not fair because if we continually spend more than we earn, our debts will eventually catch up and other words such as “default” or “bankrupt” might become more familiar.
Being thrifty doesn’t mean doing without – quite the opposite. Here are six smart ways to build savings.
- Create a budget and stick to it
Before you can get your spending under control you need to know exactly how your income compares to your expenses. There are many free online budgeting tools available, such as the MoneySmart Budget Planner found at https://moneysmart.gov.au/
There is also a multitude of smartphone apps that can help you to record everything you spend. This can be an interesting exercise. At the end of every month, you can easily compare your total purchases and outlays to your budget. It might be amusing to see where your cash is actually going.
- Be debt smart
Make a list of your debts and organise them in order of annual interest rate. Pay the ones with the highest rates (most likely your credit cards) first, especially as the debt is not tax-deductible. It rarely makes financial sense to invest money to receive 5% per annum while you are paying credit card interest of 20% or more.
- Time for a mortgage check-up?
Like all things, mortgage products change – particularly with lenders adjusting interest rates. If you are more than five years into your mortgage, it could be time for a review. Check with your lender to ensure you’re getting their best rate. Astonishing deals lenders are ready to do to keep your business might welcome you.
- Get creative in the kitchen
Have you looked deep into your kitchen pantry lately? At least once a week gather up the household and get creative. Brainstorm how to use some of the existing ingredients from your pantry and fridge (those that are still edible!) in new and different ways. This creative exercise will not only be fun, but will save on your grocery bills.
- Switch and save
When was the last cost-compare on your home/health/car insurance, phone plans, gas and electricity made? By shopping around and negotiating a better deal you could save significant dollars on your monthly spend. There are helpful websites that make comparison shopping much easier but be aware that they only list providers who paid for promotion on their sites. - Be organised!
Most people find it amusing at how many gifts they buy each year, often at the last minute. By establishing a gift list and allocating a set budget for each recipient well ahead of time, you can progressively buy gifts on sale during the year. This will certainly help your cash flow and circumvent overspending by avoiding that last minute rush.
As you watch your bank balance increase and searching ways to build savings, enjoy the feeling of being in control and knowing you can have whatever you want with just a little discipline.
Make the right choice today! Book a cost and obligation-free financial advice appointment: https://bit.ly/your-right-choice.
Visit our website to learn more: https://rightchoicefinancial.com.au/