Bill aftershock

AUTHOR OF BUDGETS DON’T WORK (BUT THIS DOES), MELISSA BROWNE, HELPS US GET OUR FINANCES ON THE RIGHT TRACK FOR THE NEW YEAR GET ORGANISED REDUCE YOUR EXPENSES NEGOTIATE SWAP YOUR BEHAVIOUR CLAIM ‘EXTRA’ MONIES MAKE EXTRA INCOME HIRE OR RENT OUT YOUR ‘STU

Afew months ago, I saw some statistics, courtesy of Illion Direct, which showed over two million Aussies had grabbed money out of their superannuation accounts as part of the government stimulus measures.

What I found most disturbing, however, was that 64 per cent of those Aussies spent that money on discretionary spending. For guys, the biggest spend was on online gambling, and for the gals, it was clothes and shoes.

Now, as an ex-financial adviser, this made me cranky, but I also appreciate that we have low levels of financial literacy so perhaps other factors were at play, such as not knowing how to find $10,000 quickly, not understanding the effect of cashing in these monies on our future self and more.

So, I’ve listed some of the tips on how to build your own $10,000 in 12 months, perfect as we head into the new year. It might seem like an extraordinary, unachievable amount of money within 12 months. Let’s break it down to make it more motivating. The challenge to find less than $200 per week as opposed to $10,000 within 12 months can seem far more achievable.

First up, set up a bank account called ‘My $10k Account’ and transfer all your savings and earnings into this account.

Reduce, swap and pause expenses, including ones you may already have paused because you’re working from home – such as travel. Once you’ve worked out your savings, set up an automatic transfer for these amounts to your $10k account.

Ask for better deals on current spending such as your home loan, rent, insurance, utilities, subscriptions and so on. Again, if these amounts are reduced, automate the savings each month to your $10k bank account.

Enjoy a cheaper dinner midweek, make lunches, buy in bulk, shop once a week, go out for brunch rather than dinner, take your lunch to work, enjoy one cafe-bought coffee a day instead of two, and look for free activities (bushwalks, coastal walks or check local guides for more ideas).

Lodge your tax return, the average refund increased this year because of potentially lower income and increased expenses from working from home.

Look for a second job that doesn’t necessarily require any skill set if you feel you don’t have any particular transferable skills, such as day labouring, working at your local cafe, or check out seek.com.au.

There are so many sites for things you can rent out, such as your caravan (Camplify), your car spot (Spacer), your car (Car Next Door), your pool (Swimply), your clothes (Outdress, The Volte and more) and everything else (Hire Things or Gecko Online).

Receive cash by recycling your unwanted items, such as phones (Mazuma Mobile or Greener Mobile) and scrap metal. Have a spring clean by selling your ‘stuff ’. You can also sell second hand textbooks and course notes (Student VIP).

Cut up your credit card, refinance and consider moving to an interest-only card, if necessary (visit Finder or Compare The Market to compare the best deals).

• Melissa Browne is an entrepreneur and author of Budgets Don’t Work (But This Does). She’s an ex-accountant, ex-financial advisor and now works with women, helping them build wealth and grow their business. Find out more at melissabrowne.courses.