10. Saving on Entertainment

Almost any information is available free and up-to-date online. So cancel the subscriptions to those magazines laying around the house that you still think you’ll find time to read. And while you were trying to do the right thing, is that gym membership getting utilised as it should. Not only is it costing you money, it’s also causing you guilt while you’re not using it. Hit the walking track or local oval and get some friends involved.

Everyone loves the feeling of buying new clothes, dining in fancy restaurants or seeing your favourite band from the front row, but there’s a reason these experiences are called luxuries. You deserve to treat yourself, just make sure it’s something worthwhile and memorable.

9. Grocery Shopping

If you spend $6 a day on lunch at work, this equates to $800 a year. If your spouse or partner does the same, you can see how excessive this becomes. We tend to take the simple and most convenient option, but with some basic changes you can become healthier and spend less money.

Steer clear of bottled water. Not only is it bad for the environment with unnecessary waste, but it’s incredibly expensive. Buy a filtered jug and reusable bottles.

Make your own coffee and use a reusable mug or thermos. Again, it will save you a ton of cash and cut down on waste from takeaway cups.

Plan your weekly meals and base them around the supermarket’s weekly specials. Not only will this save you money, but the annoying conversations each day about what you’re having for dinner. It will also make the task of grocery shopping quicker.

8. Car Costs

We all know how quickly new cars decrease in value. If you’re in the market for a new vehicle, consider buying something that is a couple of years old. This way you won’t be the sucker incurring that huge decrease on resale, you’ll receive lower insurance quotes and still be covered by most manufacturers warranties.

Most supermarkets offer discounted fuel vouchers at the base of their receipts. Cut these off after doing your shopping and keep them somewhere where you will easily remember to grab them each time you fill up. Also take note of the best day to purchase fuel. Service stations tend to have the lowest fuel prices early in the week. Avoid weekends and close to public holidays. Try and choose a car that has a high fuel efficiency rating.

Regularly change your air filter and not many people know that by not keeping your car tyres at the correct PSI can lead to your fuel efficiency dropping. Check your car’s manual to find out what the recommend PSI value is for your tyres.

All of these things will keep your car running well and importantly save you money.

7. Saving on Household Energy

So many household electrical items have stand-by mode. Whilst this function may make life easier, it does mean that there is a constant supply of power to these devices. The more items using stand-by mode, the more it is costing you. Once you get used to it, you’ll find turning these appliances off after use is not a hassle and you’ll be rewarded when you receive your energy bill. Also by selecting appliance with high energy-star rating will save on day-to-day costs.

Use power-saving settings on your computer. If you tend to use it for a while and then not use it for long periods of time, either shut it down when you’re finished or set up the power-saving mode to kick in shortly after inactivity.

6. Saving on Family Expenses

Most medicine that your doctor subscribes has a generic version, containing exactly the same ingredients and providing the same benefits for a fraction of the cost. Always ask your pharmacist when you drop off your script if there is a generic option.Apart from the obvious health benefits to quitting smoking, the monetary incentive is huge. Obviously, the cost of cigarettes is immense but think about other factors that are affected. Insurance premiums and health care bills. Bad habits in general are costly, so take stock of your life and see what other habits are costing you money and try and cut them out.

5. Cut down Personal Expenses

The introduction of Netflix in Australia saw a lot of people jump on the band wagon and subscribe immediately. However, in our busy lives, how much value are you actually getting from the service. If you find you’re not getting use from it, cancel your subscription immediately. With “catch up” services now available for almost all of the free-to-air stations, this may fulfill your viewing needs just as well.

Shop around Internet Service Providers to see who has the best deal for your current usage. It’s a competitive market, so sometimes getting in touch with them and discussing your best options can lead to very good deals.

Same applies for mobile phone plans. Each provider wants your business, so don’t settle for their standard plans. Contact them and ask what the best plan is they can set up for you based on your usage. With WI-FI, Facetime, Skype and other free means of communication, by thinking smart you may be able to drop down to a cheaper plan.

Saving money doesn’t need to always be sacrificing the things we want or need. Just be smart about what you need and find a solution that will work for you and not cost a fortune.

4. General Money-Saving Tips

If you have an addiction to online shopping, remove your credit card number from any online accounts. If you have to go to the effort to find your credit cards to make a purchase, this can sometimes be enough to make you think twice about your impulse purchase.

Make a wish list. Write down the things that you want. If in a month’s time when you check the list again and you still find you need it, then it’s probably ok to go ahead and purchase it.

Do you really need your credit cards? If you find you are constantly paying interest on your credit cards, you should consider paying them off and then cut them up. You can always set up a debit card, when you know you are limited to what you can spend, you’re more likely to think twice about that next purchase.

3. What’s Next?

Why are you saving money? To have a nest egg that you can create strategies around to eventually have your money working for you, not just sitting there to be eventually blown on your next big purchase.

The first part of the plan is setting up an amount as an emergency fund. This is money that is easily accessible in case of emergency, ie, health related or something unforeseen to do with a part of your life you rely on daily, like repairs to your car or replacing your refrigerator. This will require taking an honest assessment of your household spending and putting a figure on what you’ll need to keep on top of things if something unforeseen happens.

After establishing an emergency fund, the next step should be paying off any outstanding debts. Until you’ve done this you’re not truly saving. Paying interest is unnecessary and wasteful. Get that debt-free feeling as soon as possible.

This may sound obvious but the only way to save is to spend less than you make. Look at what you want to achieve and put a cost on it. Only then can you set goals and start saving towards it.

2. Make a budget and stick to it

With online banking being so easy to set up and access, there is no excuse for not being on top of your finances.

Don’t set your savings goals too high. You may be able to achieve them in the beginning, but if it is not achievable long-term you run the risk of falling short, becoming disheartened and then fall back to bad habits. Make sure your goals are achievable long-term not just when you are feeling optimistic.

Experts say that an important habit to get into is learning to pay yourself first. Transfer the saving amount you have established from your everyday account into your saving account as soon as your pay goes in. If you leave the money accessible in your everyday account, you’re more likely to spend it.

There are other ways to manage it, but it’s important that you set up a system that works for you and ensures that you don’t dip into the cash you’re meant to be saving.

1. Get your money working for you

You’ve set up your budget and worked out how long it is going to take you to pay off your debts and established an emergency fund. You have long-term goals for purchases to keep yourself motivated with your saving and setting yourself up for retirement.

The idea of an emergency fund is to have that cash available immediately. As a result of that accessibility it means you can’t earn as much interest on that cash. But there are options for that extra money on top of your emergency fund that can be invested in ways that are safer than trading stocks, that still make your money work for you.

Certificates of Deposit (CDs) are a good starting point. You decide the terms – how long it is held – and the money is set deposited. When that term has expired the money comes back at an appreciated rate. You can then reinvest, change the terms or take the cash. The longer the defined terms, the higher the interest rate, as you’ve agreed to not touch the money for longer and early redraw opens you up to higher fines.

You can set up any number of CDs at the same time with varying maturity terms. This allows you access to cash more regularly with the bonus of generating more interest.