Tips on how to save money

January can be a long month if you are catching up after the extra festive expenses, and especially if you were paid a bit earlier than usual. The first thing you need to do is work out your incomings and outgoings (we have a free budget planner here).  This will help you save money so much easier and more effectively.

Negotiate, haggle, barter

What bills do you have to pay?  Generally, bills will take a large percentage of your income. Providers are all vying for customers as it is big competition, so use this to your advantage.

You may have:

  • Credit cards
  • Insurances
  • Loan repayments
  • Utilities
  • Internet and phone

All you need to do is contact all of your providers and say that you would like to lower your bills/interest rate and what options do you have? Do some research on what they are offering new customers, so you have something to barter with. You can even tell your provider you’re willing to walk away, even if you are bluffing! The thought of losing a customer completely might spur them into giving you a better deal.

Did you know that there is something called the ‘Lazy Tax’? Yes, this is literally penalising you for not shopping around each year. Most insurers, for example, offer better deals to new customers rather than their loyal customers. So, if you have received a letter/email to say your policy is due to be renewed, then take a look to see if has increased. Check it against your previous year’s premium payment, get quotes from a number of other providers, and then call your insurer to ask why your premium is higher. You are well within your right to ask for a better deal and even a discount for being loyal. Most of the time you will be able to save money and if not, then you are armed with other quotes to get a better deal. Try this with all of your debts, you might be surprised with what savings you make.

If the technicalities of the insurance policies are just too much get your head around, ask our insurance broker to do the leg work!  Jade is an expert in the industry, she will find you the best deal with the right cover for you.

Make mini savings each month – every little counts 

If committing 10-25% of your salary to savings each month means you regularly need to dip into your savings to pay your way each month, then that’s not sustainable. The more you dip into your savings, the more of a habit it will become and then you’ll have to start from scratch.

When you do an honest tally of where your money is going each month, you can find simple ways to cut costs. For example, you might buy a coffee every morning from the local deli that would amount to around $25 a week, which equates to $100 a month. If you decide to only buy a coffee every other day, then you could save $50 a month. $50 a month over the course of the year will give you $600 savings! To make it easier, you can set up a direct debit from your personal account to your savings account, so you never actually see it.

Plan your food shopping

Did you know Australians waste 4 million tonnes of food each year, that’s a loss of $8 billion! Source: FoodWise

The biggest categories of people who waste food are young consumers aged 18-25, households with incomes above $100,000, and families with children.

How many times have you been shopping and then opened the fridge later that week to find fresh items are now out of date? You are literally throwing money in the bin or pouring it down the drain. Lenders for home loans now calculate living expenses when assessing how much you can borrow. When completing a mortgage application, you’ll have to estimate all your regular outgoings including ‘groceries’!

We hope these little tips help you save some big $’s.

If you need help with your finances in terms of financial planning, tax planning, getting a loan, or insurance cover, please give our Taxpro team a call. We have a number of experts here in Balcatta, Perth that can help you get back on track!

 

Call 08 9240 7629 or email Chloe at admin@taxproaustralia.com.au

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