Saving money well

Whether it’s for a house deposit, your next holiday, or simply that cute-but-expensive item you’ve had your eye on for ages, saving doesn’t have to be difficult

Often, how much you save depends on how much you’re willing to go without. This doesn’t have to be completely glum, however – sometimes a relook at your budget can lead to finding extra funds that can be put aside, or you’ll simply find that some expenses are no longer necessary.

CUTTING DOWN INSTEAD OF CUTTING OUT

It’s a big ask in our caffeine-addicted society to cut coffee out of your diet altogether, so why not simply cut down? Instead of buying a cuppa each day, swap one or two a week for making an instant coffee in the office. Technically, it’s only about $10 a week that you’re saving, but it all adds up. You can use a similar philosophy with catching up with friends – suggest meeting over a coffee or morning tea instead of a full meal at lunch or dinner.

When it comes to clothing, you can cut down on costs by shopping at op-shops while you’re saving or revamp your wardrobe by pairing together different pieces for a whole new look.

CHECK THE BUDGET

Sitting down and going through your expenses each pay period can actually reveal ‘hidden funds’ that you may end up with after all the bills are paid.

Often when we don’t budget, any surplus can disappear into extra meals out or takeaway, or purchasing items we don’t really need. If you budget each pay period, you’ll know how much surplus is available to set aside for your savings.

Bonus points if you open a savings account that doesn’t let you withdraw money all the time but has a reasonable interest rate. Many accounts will let you set a goal for saving amount and time frame, and calculate how much you need to put aside each week to make that goal.