10 ways to save every day
Oh no! Where has my money gone?
Have you ever put your hand in your wallet and had less cash than you thought? I thought I would give some tips below for reducing your expenses (or at least spreading them out over a longer time frame) so you will have more ready cash. By prepaying certain expenses or paying in instalments you can increase your cash flow. If all these 10 tips were followed you should be saving a substantial amount weekly.
1.Pay your mortgage on time – and add a little extra.
Paying your mortgage on time is very important to keeping a good relationship with your bank and if you can afford to pay a little extra each time, the difference can be substantial. If you paid just $100 more off your mortgage each month, you could save nearly $70,000 on a thirty year loan.
2.Pay mortgage interest in advance – If you have enough cash or happen to come by a windfall, prepaying mortgage interest payments can save you a lot of money over the term of a 30 year mortgage.
3. Pay bills in instalments – House council rates $1800 / 10 = $180 per instalment. Most bills can be paid in instalments and most institutions now like their customers to pay by direct debit because they know they will receive the money on time. Some even offer a discount for early payment or direct debit.
4. Mortgage – PAYG income tax withholding variation -This is only relevant for Australian citizens and is a form you fill out so the Tax Department withhold tax payments from your wages if you have an investment property. This is a way of prepaying tax before you do your annual tax return. It means you will have more in your wages as the tax is deducted each pay period, that is of course, if you are negative gearing a property – (it’s costing you more than the rental income).
5. Credit Card – Try to pay off your credit card every month or do without a credit card! Don’t just pay the minimum monthly amount – this is a recipe for disaster!!
6. Eating Out – Eat out less or eat at cheaper places. – We live in Melbourne which has a large Chinese and Vietnamese community. A cheap Vietnamese cafe will only cost you $30 for two, for lunch. Also, some hotels will have cheap nights, where they have a set menu. These discount nights can be a considerable saving on eating at the same venue on a normal night.
7. Make your own lunch – This could do wonders for your health! Imagine beautiful home made salads, sandwiches or wraps with healthy fillings for lunch. It takes a bit of organisation and some extra shopping but the benefits can be fantastic and cost less than unhealthy takeaways.
8. Avoid brand names if shopping – This can also include visiting the branded shop (or supermarket) instead of supporting the local shop keeper or farmers market. Sometimes these choices won’t necessarily be cheaper but you may feel happier about where the food was sourced or transported from. We shop at a family owned fruit and vegetable warehouse that is in between the local market gardens. It is very cheap, the produce is good quality and we like the atmosphere, rather than visiting the large supermarket chains. To give you some idea – apples are $1 to 2.99, whereas they are $4 to 5.99 in the supermarket.
9. Don’t spend when you’re drunk – I must admit this is not my idea ( I came across it somewhere on the web) but I think it’s definitely worth mentioning. How many times have you heard about someone going to a function like an auction fundraising night and paying too much for a momento after having one too many drinks!
10. Save on fees – negotiate a credit card that is fee free, Don’t use other banks ATM’s that will cost you $2 per withdrawal. Don’t have a phone plan that is more expensive than your needs.
I hope you enjoyed these tips. If you have any other ideas please don’t hesitate to add them as a comment.