No matter what you earn, saving a little extra money is always a good idea.
Costs for essential services continue to rise and according to the Australian Bureau of Statistics, the seasonally adjusted Wage Price Index (WPI) rose a mere 0.2% in the June 2020 quarter, representing the lowest annual growth in the 22-year history of the WPI.
Avoid that feeling of “I shoulda saved more”. You’ve got this! Follow these simple tips and start saving more now.
1. Capitalise on low rates: consider consolidating existing debts
Australian Interest Rates hit a record low of 0.10% in November of 2020, making this an ideal time for you to review your existing debts and consider consolidating.
According to Amanda Horswill of Canstar, “If you are concerned about existing debt, staying on top of repayments or how much interest you’re accumulating, you may have some options available. Two common options are debt consolidation of personal loans and credit cards.” But as the Australian Securities & Investments Commission’s Money Smart team points out, know the risks and make sure you will save money before you consolidate your loans into one.
2. Ask for a better deal, at the right time
“Too many people stick with financial institutions and credit card companies year after year out of convenience or misplaced loyalty,” said Sam Bocetta of Privacy Australia.
Installing the GetReminded app (from the Apple or Play Store) can prompt you to shop around for the best deal at the time your contracts are due for renewal. Get reminded when it matters and potentially save hundreds or even thousands of dollars a year on your everyday expenses.
3. Declutter and make money
Marie Kondo, the tidying expert, bestselling author and star of Netflix’s hit show, ‘Tidying Up With Marie Kondo,’ has become an international sensation. If you are on-board with the decluttering craze, consider making and then saving some extra dollars by selling your unwanted goods via online platforms including Gumtree, eBay and Facebook Buy Swap and Sell groups.
“I have sold several thousand dollars worth of stuff to declutter our house!” Deb Liu, Vice President of Marketplace and Commerce at Facebook told Australian Reader’s Digest. “I [also] get the kids involved. We’ve sold some of their games and toys. It’s a win-win: They think they’re earning money for even more toys, and I get to teach them about math and budgeting!”
4. Change one spending habit and save
Money Smart points out that making minimal changes in your life can help you achieve your money-saving goals.
“Small changes can make a big difference to your bank balance. Change one thing you do regularly and you could save money. Switching from a large to a small latte can save $1.50 a day. This saves more than $500 a year on buying coffee,” The Money Smart team advises.
5. Avoid overspending at Christmas: cheap and cheerful gift ideas
It’s the thought that counts! To help you save more this Christmas, the team at The Thrifty Issue have compiled a list of affordable and thoughtful gifts.
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Disclaimer: This information is meant as a guide only and should not be taken as legal or financial advice.