We regularly receive the same questions. ‘Teach me how to save’ or ‘how come we can never seem to save money?’
Below are what we would call the ‘Top Ways to Save More WITHOUT Breaking the Bank’
1. Change the way you look at saving money – Immediately
If you view this as a battle, it will be a battle. I know this is easier said than done but it is the honest truth. Remember when you were a kid and you had to do a chore or homework? If you dwelled on it and started to hate it, was it an enjoyable experience? Of course not. So why would anything else in your life be any different? It won’t be.
2. Stop trying to change things that cannot be changed.
If you can only save 5% of your income per month, no matter how hard you try, do not put 10% away at the beginning of the month to try to be good as this is only going to end up making you feel bad when you need to go into your savings to cash flow the last few days of the month. This behaviour, linked with point one above, is only setting you up to fail.
3. Attack you things that you normally wouldn’t think of. Work Smarter, not harder
What is the interest rate on your credit card, personal loan or home loan? Why don’t you reduce these to increase your cash flow?
For example, let’s say you have a $25,000 personal loan at 13%. If we showed you how to obtain a personal loan with an interest rate of 9.5%, do you know how much you would save per year? $875 per year just by being a little smarter with your money. Imagine if your had a $350,000 home loan, how much could you save?
What about your insurances. How much are you paying per month on these? $50 per month, maybe closer to $100? Possibly even more? Did you know your Superannuation Fund could pay the majority of your insurance premiums? No before you say ‘Well I don’t want my super to go backwards’ we hear you, trust us, we do. But have you thought about this;
1. If your Super pays the money or you pay the money, someone is still having to pay the money
2. Super generally pays less tax then a working person. This means the fund needs to earns less to pay the same bill. Don’t forget you need to pay tax before you pay your insurance premiums!
3. You could redirect some of the money you no longer pay the insurance company towards the super fund now to help pay for the premiums. This could be seen as ‘Salary Sacrifice’ and become a tax deduction
4. Review your super so it starts to earn more. This will help with the additional cost of the insurance premiums
5. Shop your insurances around, you can always get a better deal
6. Get a 15% rebate on your insurance but setting them up more effectively
Ask us how today
4. Understand what an offset account is and learn how you use it properly with your home loan.
We are amazed at how people hold so much trust in their bank. They simply feel they have a great deal because the bank told them so. It is simple knowledge, the bank does not want the debt to be paid off as this is not in their best financial interest. You do want this loan paid off (let’s hope so) so why are you doing business with companies who have a different agenda?
Learn how today! You will save thousands of dollars without having to reduce your lifestyle
5. Get a better super fund
If you could choose between putting more money into your fund or simply having your fund perform better, which one would you choose moving forward?
Whilst past performance is no indication of future performance, we see countless people putting money into superannuation purely because they think it is the best thing to do. If you cannot explain how your fund is performing, where the money is invested or simply what level of risk you are taking, than why would you put any more money into it?
Review your super now. Stop wasting time.
6. Stop paying for everything upfront, with cash
Why are you paying for everything immediately with your cash? Is it so it’s one less thing to worry about?
Do you know you could be wasting money doing this?
They money (cash you are parting with) could be sitting in your loan, reducing the interest charged, until you need to pay for whatever it is.
IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquirers and requests for financial and/or other advice on this website are referred to third party, qualified intermediaries – with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs.