Growing up, when I wanted to purchase a material item (e.g. a new item of makeup), I would save double the purchase cost amount. For example, if the item was $25, I would save $50 before I bought it. This was to ensure I always had some money available in case of an emergency.
You don’t necessarily need to save double but making sure you have extra savings aside for emergencies is important.
As soon as your regular salary hits your bank account, establish an automatic transfer to direct a nominated amount into your savings account or investment account. An automatic transfer removes temptation to spend your savings.
*Future Key Financial can help you determine an appropriate savings strategy. Contact us today to arrange a complimentary discussion with one of our Financial Advisors.
Pack your lunch
Too often I see co-workers buying lunch every single day. If you spend an average of $10 per day on lunch, that equates to $2,600 per year! That money could have been put towards a holiday….
Getting into the habit of doing a weekly grocery shop and planning lunches for the week ahead is a great way to save money. I also find shopping on a full stomach reduces impulse buys.
Share clothes with friends
Rather than spending a few-hundred-dollars on a new dress for an upcoming event, consider borrowing an outfit from a friend.
When your car insurance or electricity bill arrives, compare the market. Before you switch (if you find a better policy/provider) contact your existing provider and see if they can arrange a better deal. If you’re an existing customer, your provider won’t want to lose you if avoidable.