Depending on your relationship with money, saving can either be a joy or a headache. No matter how difficult it is for you to save money, seeing the amount growing in your savings account over time will surely be a positive experience.
We’ve put together 10 top tips to help you save more of your hard-earned cash, whether it’s for a safety net or a big family holiday, these tips will help you reach your savings goals
1. Pay off debt first
This one is sometimes tricky for people to get their heads around, especially when their level of debt is quite high. But if you compare the interest you’re earning on your savings with the interest you’re accruing on your debt, the latter will be a lot higher and definitely worth sorting out first.
2. Value every dollar
If you’re aware of every dollar you’re spending, this will change the way you think about money and savings overall. It might seem like a bit of a chore to keep track of every dollar spent, but if you make an effort to spend even one dollar less on something, it all adds up.
3. Sharing is caring
It’s quite possible that you’re already doing this if you live in a household with a few people in it, but sharing subscriptions with others is a great way to save money. Think about sharing any Netflix plans, food delivery services or mobile phone plans.
4. Find cheaper transport options
With the price of petrol rising at an alarming rate in New Zealand at the moment, it’s definitely a good time to consider alternate transport options – can you take a bus or train to work? Can you carpool with others who live in your area?
5. Take lunch to work
It might seem easier to grab some lunch on the go from a nearby cafe, but when you’re trying to cut down on spending, leftovers and sandwiches are the ultimate money-savers. You can also make a little bit extra for dinner the night before and take it for lunch.
6. Cut down on one of your habits
Ordering three coffees a day? Try cutting it down to two and then one. Do you buy a new outfit for every event? Try mixing and matching what you already have. We all have our own guilty pleasures but we don’t have to give these up forever, just until we reach our savings goal.
7. Take another look at your insurance
This tip isn’t necessarily in the aim of cutting back on all of your important insurance, it’s more to encourage you to review your current policies with a financial adviser. Your life might have changed since you last looked at your insurance and there might be a better, more affordable option for you out there.
8. Be realistic
It’s important to have realistic expectations about your savings goals. Saving shouldn’t be difficult and mean that you have to go without the basic necessities. If you’re struggling to figure out how much you can actually afford to save, sit down with one of our advisers and they can plan it all out for you.
9. Set up automatic payments…
…into your savings account. We all probably have automatic payments that come out for bills when they’re due, but not many of us would have a payment automatically going into our savings each week. Setting this up gives you a better idea of what you’re working with each week after money has already gone into your savings account automatically.
10. Avoid impulse spending
This is a tricky one for many of us, particularly when we’re stressed or there’s a one day sale on at our favourite store. A way to make avoiding impulse purchases easier is to sleep on it for a day or two – yes the deal may only be for one day, but is it really that much cheaper than the normal price?
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