8 Tips for Improving Your Financial Situation
- August 1, 2016
- Posted by: Service Skills Academy
- Category: Finance,
I don’t know about you, but my finances are never far from my thoughts. No sooner has my pay check landed in my bank account, than it is leaving again – on its way to pay mortgages, bills, loans and everyday living expenses. With houses costing around 6 times the average yearly wage in 2000s, compared to 3 times the average yearly wage in the 1980s, Australia is now the third most expensive country in the world to purchase a house in regards to income earnt vs house price. So, how can we make the most of each dollar?
Firstly, we know a lot goes on to the big things, like rent, phone, travel, electricity etc, but where does the rest go? Start by keeping track of all of your expenses – every single cent should be accounted for. Be honest, don’t leave out things because you think they don’t make a big difference, the little things soon add up. For example, if you work 5 days per week and buy 1 coffee per day at $5, that costs you $1300 per year.
Once you have pinpointed where your money is going you can see where you can make changes and cut back, and make a realistic budget encompassing all of your incomings and outgoings.
Decide how much you would like to be saving each week/month with a set figure, e.g $300, and include that in your budget. Don’t plan to just save whatever is left over from your pay at the end of the pay period as you will always find a way to spend “left over” money.
Here are some key tips for you:
- Change to instant coffee instead of buying one each day, or cut down how many you buy each week.
- If you aren’t using a room in your house, turn the lights off.
- Set appliances such as the dishwasher and washing machine to come on overnight, when your electricity is off peak and cheaper.
- Cut down time spent in the shower and install a water saving shower head.
- If your bank charges unnecessary fees, shop around and find an account that works for you. Just going from $5 per month account keeping fee, to a fee free account saves $60 per year.
- Instead of having a night out in the city with friends, invite them over to your place. You will save money on drinks, cover charges, and taxis but still have a great night with friends.
- Make meals at home, and portion them up to take to work with you along with snacks and drinks. You will spend a fraction of the cost than if you were buying food and drinks each day.
- Use a budget planner.