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Tips to cut your spending in half
The cornerstone of wealth creation is the ability to save money and the only way to save is to spend less than is earned.
There are many ways to cut down on spending on even the tightest budget.
Here are some tips:
• Cut up credit cards and only use cash. It’s much harder to fork out ‘real’ cash than to charge to a card. We’ve been conditioned into viewing plastic cards as ‘real’ money. But when we pay by card it doesn't feel like spending 'real' money. Handing over cash creates a sense of loss, which drives home the value of a product.
• Review ongoing costs such as gym memberships, insurance premiums, Foxtel subscriptions, magazine subscriptions and so on.
• Reduce grocery bills by not shopping when hungry, going vegetarian several nights a week, using cheaper cuts of meat and buying generic store brands.
• Do a spot of self-analysis and understand the cause of your over-spending.
• Buy second hand, frequent markets, establish a trend for homemade gifts and send cards online for a cheaper Christmas.
• Limit the number of takeaway meals.
• Allocate one week a month when the whole family goes without something every day – e.g. television, alcohol, heating, the car, the computer, sugar, coffee, energy drinks. Gradually build this up to three weeks a month.
• Cut in half the number of times a week you go to the local shops or shop online.
• Pack your lunch for work every day.
• Design a budget that includes some fun spending and reward yourself and your family with a celebratory treat each time you reach a set savings goal. Rewards reinforce desired behaviour.
There are many ways to cut down on spending on even the tightest budget.
Here are some tips:
• Cut up credit cards and only use cash. It’s much harder to fork out ‘real’ cash than to charge to a card. We’ve been conditioned into viewing plastic cards as ‘real’ money. But when we pay by card it doesn't feel like spending 'real' money. Handing over cash creates a sense of loss, which drives home the value of a product.
• Review ongoing costs such as gym memberships, insurance premiums, Foxtel subscriptions, magazine subscriptions and so on.
• Reduce grocery bills by not shopping when hungry, going vegetarian several nights a week, using cheaper cuts of meat and buying generic store brands.
• Do a spot of self-analysis and understand the cause of your over-spending.
• Buy second hand, frequent markets, establish a trend for homemade gifts and send cards online for a cheaper Christmas.
• Limit the number of takeaway meals.
• Allocate one week a month when the whole family goes without something every day – e.g. television, alcohol, heating, the car, the computer, sugar, coffee, energy drinks. Gradually build this up to three weeks a month.
• Cut in half the number of times a week you go to the local shops or shop online.
• Pack your lunch for work every day.
• Design a budget that includes some fun spending and reward yourself and your family with a celebratory treat each time you reach a set savings goal. Rewards reinforce desired behaviour.
Views: 64
Replies to This Discussion
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Permalink Reply by Leona on -
My tips are
- do a major grocery shop once a fortnight
- have a standard grocery list and mark off only what you need
- buy in bulk if possible
- but check price per kilo e.g. clothes detergent for front loader compare 1kg, 1.5 kg, 1.7kg, 4kg and 16 kg lots. Prices always vary. check every time.
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Permalink Reply by hortense Vaughan on -
My tips to reduce your shopping costs:
(a)always prepare a list of what you need from the specials on the flyers and buy from the list
(b) Buy what you need and not what you want.
(c) check your docket to see if you have been overcharged. In my experience mistakes at the checkout are in 90% of cases in the supermarkets favor
(d) check the prices of your purchases in at least two different shops(preferably three)
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Permalink Reply by Mrs. C. Jarvie on -
Before I spend I do a quick "value for money" check. This works in the market, online, at a garage sale or anywhere. I ask myself, "for what I am about to pay, what do I get? Will I think that I got a good deal tomorrow, a week from now, a month from now, a year from now?" If the item won't pay itself off, or worse will end up costing more later, then I walk away.
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Permalink Reply by Bytta on -
i have a cheeky one...
have rich friends and let them be generous to pay the dinner bill :D
just don't get sucked in with their spending pattern though.
anyhoo, the zen side of me believes that happiness from within makes us feel complete without the need to buy dresses, bags, plasma TV, fancy cars, you name it.
while saving money is important, we need to be careful not to cultivate the destitute mentality.
there's a difference between being wise with your money vs spending the afternoon looking for the cheapest item (by mere cents) and worrying every cents you spend.
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Permalink Reply by Bron82 on -
It funny that this topic is up now. As my new years resolution I've decided to get my *rse into gear and save a house deposit and see how little stuff I can buy for a whole year and how frugal a life I can live. I've actually started now, before Christmas as a kind of challenge to myself!
My new habits so far...
1. Shopping at an Aldi near me and a catering supermarket where I can buy things in bulk that I need (ie I eat alot of rice!)
2. Thinking of takeway that I like (Thai) looking up a recipe and buying the veggies - sometimes the ones past their prime, making batches and freezing it.
3. Buying a monthly train ticket instead of weekly or daily ones
4. Really thinking whether or not I need to drive my car somewhere... alot of the time I dont.
5. Put in a veggie patch and a flower garden (I used to spend a bit of money at the florist and buying bits of fruit and veggies just to 'nibble' on!)
6. Noting EVERYTHING I spend my money on - I find a fair bit of my money goes on lots of "little" things ie Coffee, Brunch with friends, cheap (read: crappy and badly made) tops and accessories, Magazines (admittedly I like reading "The Economist" but I've learnt to read it free online rather than pay $10.00 for a physical copy!)
I've been trawling frugal living websites for ideas and have found that my mum has a sewing machine and overlocker at home and I've decided my big thing for the year will be to learn how to make clothes. I've come up with a few new hobbies and really learnt alot about myself in the meantime.
Everytime I take up a 'frugal' habit or act frugally I calculate in my head how much I've saved myself and then I go and "spend" that money by taking it out of my everyday account and putting it in my savings account. This little trick has been quite an eye opener as I 've seen for myself how much I have saved! It was quite a scary exercise!
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Permalink Reply by Michelle on -
My best tips...
* Use cash - if you only have $200 cash in your purse, you can't let the grocery bill go to $210 and just whack onto the card. This example could save you $500 a year
* Plan your menu for 30 days and shop once a month. I've saved 50% by doing this
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Permalink Reply by Georgina on -
Whilst what you are saying is true, use cash instead of cards. But I do believe we are heading into tougher times ahead so stocking up on food wouldn't go astray either. Food is not getting cheaper, only the occasional discounted food items. Fruit and vegies and meat tend to rise whenever there is bad weather (drought, flood, a shortage of crops etc....)
Also what about creating a little vegie garden? Grow herbs in a container, grow tomatoes, lemons whatever is feasible for your home and lifestyle.
And we can also save money by turning the power switch off whenever we don't use an appliance and only have a light on in the room we are staying in. Don't use the heater all the time (we can wrap ourselves in jumpers and blankets). Don't use the air conditioner all the time only when we have to!
Have shorter showers, use power saving electric bulbs etc etc.
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Permalink Reply by Dave Div on
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I think all will agree our cars guzzle lots of cash, so that's a good place to start saving.
Beyond trading the auto in for a bicycle, its easy to save money on car-related expenses such as insurance.
For a whole load of tips for saving on car insurance see this article: save on car insurance
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