Financial freedom seems like a couple of words that could only be a dream to most people, but there are many ways to save on money by adjusting your financial situation with a few easy tweaks.
Here are some of our tips to start the year financially focused and put some extra money in your back pocket.
While it’s easier said than done, the first thing to do is actually start by writing down all of your expenses and setting a strict budget tailored to your specific circumstances. Having a budget will help you stay on top of your expenses and gain a clearer perspective of what you have to save and invest. Budgeting also helps you eliminate unnecessary luxury and impulse buys.
Once you’ve done this try these tips for saving faster:
1. Open a savings account just for savings
A great way to encourage regular savings is to set up a separate savings account where you can quickly deposit your pure savings after paying all your bills and regular expenses for the month. It’s easy to say you just won’t spend that money, but in reality, if you don’t actually put your savings away separately, tapping that ATM card will eat away at your savings without you knowing it. An excellent saving tip is to set up an automatic transfer once you get paid, so you’re regularly contributing to your savings.
2. Review your home loans and insurances
You should be reviewing your home loans and insurances annually to check if there are any better deals with the competition. A little bit of research could mean big savings in the long run. Review your home loans against others and consider the rates, fees, and features of the current policy. The same with your insurance providers and policies. If you happen to find a better deal in the market, don’t hesitate to switch to a different provider.
3. Pay off your credit card faster
While there can be benefits with having a credit card as another way to manage your finances and gain points towards travel, it can also get you into serious negative debt if you get trapped paying too much on interest payments. Check your statements for how long it will take to pay off your credit card to meet the minimum requirements.
4. Consolidate your debt
The goal is to reduce the amount of different interest repayments you’re making. Consolidating all of your debt into one debt means cutting down on the interest you’ll be required to pay to allow you to focus on managing one debt, rather than multiple smaller loans. Once you only have one major debt to look after, you’ll strategize how you’re going to pay off the debt which much more clarity.
5. Discount where possible
This might seem like an obvious way to save money, but there are more ways to save on discounts than just looking for specials in the supermarket isles. Credit cards often have deals of offering 0% interest for the first year, and services will usually give you a discount if you book multiple times. Utility companies will also often provide a discount for changing to their company, so there are always ways to put money in your back pocket by asking the right questions.
6. Get the right financial advice
Financial planning can assist you in the education and expert guidance to make smarter decisions about your financial future. When you get the right financial advice, not only will it help you save money but you’re also getting the peace of mind that the right decisions are being made about your future. Once you have a good financial planner, you can get advice on investments, tax planning, budgeting, home loans, superannuation, retirement and more.
Don’t get trapped into paying high interest on credit cards simply because you’re with a provider you’ve been with for years. By shopping around and carefully examining the options you could be saving more than you could have ever thought.
These are just a few ways you can give your monthly budget a creative revitalisation that will make things more comfortable in the new year. There are many incredible savings opportunities out there that can be easily accessed by almost anybody—you just need to know where to look.
Are you interested in saving money? So are we! Get in touch with our accountancy teams on the Sunshine Coast and in Redcliffe to find out more about how we can work with you to minimise tax obligation and optimise income. Call us today on (07) 5493 2111 to get started!