Have you ever wondered why some people seem to save a lot more money than you do even though they might earn less?
Are you finding it difficult to achieve your savings goals to buy your first home or investment property?
Are you wondering how some people manage to avoid the allure of the impulse buys while you find yourself often falling ‘victim’ to their marketing?
This week we’re exploring the 6 secrets to successful saving that you can quickly implement without too much trouble:
- Automate your regular savings
If you receive your salary on a weekly, fortnightly or monthly basis, set up an automated direct debit or transfer to another account or investment portfolio on the same frequency. It’s important that you automate this as we all know that life can get busy, and we can often find that we just don’t seem to have the time to manage these administrative tasks.
- Create breathing space before impulse buying
If you find yourself in a position where you want to buy something that you know is not essential and seems a little excessive, take a 30 – 60 minute, or even overnight break before making the transaction. Often, you’ll find that when you consider the purchase again after this break that it’s lost its lustre and you’ll find it much easier to walk away from. This can become a quick and simple habit to get into that you may find saves you thousands each year.
- Set a daily discretionary purchase limit
If you’re buying a coffee in the morning on the way to work, don’t have one in the afternoon. If you’re taking your lunch to work and it costs considerably less than buying it near your workplace, maybe you’ve earned that beer with your mates after work. By setting a discretionary spending limit each day, you can easily keep this under control and quickly learn the trade-offs in your daily and weekly budget.
- Review your budget regularly
Have you received a pay increase? Did you increase your automated direct debits and savings at the same time? Or did you find that you suffered from what they call ‘lifestyle creep’ whereby you continue to spend more as you earn more? By reviewing your budget regularly, you can ensure that you’re on track and hitting your goals.
- Track AND celebrate your successes on the way
Are you looking to save up to purchase your first home or investment property? Create some smaller milestones on the journey that you can celebrate in a reasonable way as you achieve them. For example, you might be aiming to save $100,000 to buy your first home. You could therefore decide to create smaller milestones at $25,000, $50,000, $75,000 and $100,000 to celebrate your progress towards your goals. By creating this positive reinforcement, you may just find that you achieve your goals that much faster.
- Review your bank and credit card statements
How often do we receive a credit card or bank statement and simply delete it or throw it in the bin? This is becoming even more common now that most of us are receiving them via email, as it becomes just another item that is easy enough to delete. Have you gone through your bank or credit card statement line by line recently and found that there were items there you had no idea you were still paying for? In this day and age, it’s incredibly easy to sign up for subscription services and regular payments that are simple to forget about. Check your statements and cancel anything you no longer need.
Whatever your savings goals may be, we hope you find these tips helpful. Feel free to share your savings tips with us in the comments.
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