15 Oct 7 Personal Finance Hacks To Help You Save Money
Saving money and setting up a personal budget is important for us to reach our financial goals yet many of us find it a challenge. Often we start off with great intentions, but then fall off the wagon! Life gets in the way, we don’t maintain consistency and then it becomes too hard to pick up from where we left off.
If you can relate to this here are 7 ways to help you save more and watch your personal savings grow:
Have Clear Goals
Saving for particular goals and setting up a personal budget around this is really help you maintain momentum. These can include saving for a holiday, a home deposit or home renovation. Alternatively you can look at saving a specific amount such as $10,000, $50,000 or $100,000 and, once reached, you could then see an advisor about investing into further wealth accumulation investments.
Prepare a Personal Budget and Stick To It
Saving 101 boils down to spending less than you earn. Without knowing how much you earn each month and how much you spend you will never know the amount you can save. Furthermore, you may be consistently spending more than you earn and going into debt. There are some great online tools available to help you set up a personal budget which will help you keep track of where your money is being spent. My favorite is My Prosperity.
Pay Yourself First
Set up an automatic transfer into a separate savings bank account whenever you get paid. Paying yourself first rather than from what is left over is extremely empowering.
Pay Down Bad Debt
Once you get into debt it can difficult to get out. If you have a variety of debts like personal loans or credit card consider consolidating them into a low interest alternative. Speak to a professional about options that may be best for you and your situation. Stop going into further debt by sticking to a budget and only purchasing what you have budgeted for.
Stop Before You Shop
Savings can be diminished if you have a habit of impulse spending. One strategy I love, and find works really well, is to wait 48 hours before I make a purchase of something I want rather than need, or think I ‘may’ need. This applies to both in store and online purchases. If, after 48 hours I still want to buy (and it’s in my budget) I then go ahead and make the purchase. Quite often after 48 hours the urge to have the produce or service has subsided and I am glad I took a step back rather than rushing in.
Cut Down on Small Accumulative Costs
It’s those small but regular expenses that can dramatically reduce your savings. Instead of purchasing a daily coffee look at investing in a coffee machine, make extra dinner and have the leftovers for lunch, review subscriptions such as cable TV, newspapers, magazines, software and unsubscribe from ones you rarely use or can do without.
Have an Emergency Fund
Having an emergency fund as part of your budget will prevent you from dipping into your savings or using a credit card to cover costs that may arise unexpectedly. Often these costs have to be paid immediately and we don’t have time to save. Your car many need major repairs, home appliances could break down, medical expenses not covered by insurance may need to be paid, just to name a few.
Applying these 7 great ideas will definitely help you save more money. Being organized, persistent and dedicated to the process of saving is, however, the key to success. It may take a bit of time for you to get used to your new savings habits but once you do, and begin to see the results and the possibilities, you will be so glad you started.
If this has struck a cord then please get in touch. I’d love to see if I can help you get back on track.