If you are one of the lucky few, saving comes naturally. For others, it is a big challenge! Whether you are saving for a new home, a holiday in Bali or even a rainy day, these helpful tips from the Mortgage Supply will get you on the right track.
What do you spend your money on? – Be honest!
The first step is figure out your outgoings. Tally all your expenses including coffees and daily snacks – you will be surprised to see how much these add up to. Be honest to yourself and refer to your bank statement if you are unsure. The amount of wasted money is often enough to want us to break bad habits.
Create a budget plan
The next step is to make a budget of your income and outgoings. Include all rental, credit cards and necessary outgoings. From this you will be able to calculate your disposable income. From your disposable income, decide on the essential expenditures. If you cannot live without your $5 coffee each day, sacrifice another luxury such as dining out or buying new clothes. Be realistic in your expectations, setting aside a small amount each week for miscellaneous items. You will be setting yourself up for failure if you try to save every penny.
Take what you can’t see
The easiest way to save is remove the money from your bank into a savings account before you set eyes on it. If you trick yourself into thinking the money isn’t there to spend in the first place, you are not going to miss it. Set up an automatic payment that goes into your savings account every payday. It helps to have a savings account that is separate from your daily account so you cannot check the balance and transfer funds at the swipe of a screen.
Pay off your debt first
Paying of debt may be disheartening when you are trying to save but you will only be creating a false economy if you do not pay your debts off first. Debts accrue more interest than savings earn. Pay off the most expensive debts first and research ways to lower the interest on your rates. Take advantage of debt consolidation loans so you only have one loan for all your debts. This will make the management of your debts easier and you could save money in the interest costs.
Look for ways to reduce your essential expenditures
We all have to eat, but you can probably be doing it on a lower budget. Cook in bulk and freeze meals so you always have food in the house to avoid takeaway or dining out temptation. Swap your long lunches for last night’s leftovers and catch up with friends after work at free events or each other’s homes.
If you must buy a new item of clothing a week, try the 30-day rule. If you see and item, wait 30 days before you make your purchase. Chances are, you no longer want it. This is a great tactic for all spending temptations.
If you have current debts, research the market for lower interest rates. Contact the Mortgage Supply for ways we can help you save on your mortgage repayments to reach your saving goal sooner.