Money Saving Ideas
Part 1: Your Finances

Money Saving Ideas
Part 1: Your Finances

Sometimes it seems almost impossible to save money, but it is surprising how much you can actually save if you put some effort into working out where your money is actually going, and then go about reducing unnecessary expenditure and making the most of the money you have available.  You can then use your focus on moving closer to your goals to keep you on track... and hopefully reach them!

This is Part 1 of a series of articles designed to help you do just this.  Visit the other parts also for more ideas.
Part 2: Shopping
Part 3: Life and Home

The following tips focus on your money- how you can handle it, save it, grow it and make more of it.

• If at all possible, try to pay off credit cards and any other high interest debts quickly first. The amount you would make on interest with this money deposited in savings is nowhere near what you are being charged!
  
  
• Pay with cash where possible, especially if you have trouble with running up credit card debt and being unable to quickly pay it off. Cash not only saves you having to pay interest, but it gives you direct input as to what money you have and have spent. It also makes the expenditure seem more *real* than using cards.
  
  
• If you need a card, have a debit card, not a credit card. this allows you to do basically the same things as a credit card, but you can only use the money you have in your account, not run up debt.
  
  
• Get an online bank account for savings- at least until you have decided where else you may want to invest. These accounts usually have no fees and much higher interest rates than standard at-call accounts.
  
  
• Don't have debit/credit cards attached to your savings account, or if you do, don't have them easily accessible when out and about, if you distrust your ability to not use them!
  
  
• Stop and really think before buying something- look at the big picture. If, instead of buying a coffee and cake for $5 for instance, you invested it, how much would that $5 add to your total savings, after 20 years with compound interest? A lot, let me assure you. Work it out for yourself! Then multiply it by all the times you buy this kind of item, and you can see how these small expenditures really do affect your savings. But- and here's the clincher- you do actually need to put these incidental amounts into your savings account, not just spend it elsewhere!
  
  
• Have a jar where each time you manage to resist spending, you drop that amount into the jar. Then, once a week, or month deposit this amount into your account.
  
  
• Every day when you come home from work, shopping, or wherever, chuck all of your change into a jar/money tin. When full, or once a month or whenever, deposit this into your account. Check if/what your bank charges for change deposits. You may need to do it in segments to avoid charges. Alternatively, use this money for such small expenditure as milk, papers, incidentals, kids spending money etc, and deposit the equivalent amount in notes into your bank each week/month.
  
  
• Have a regular direct payment arranged from your working account into your savings account- and forget about it. Even if it's just $10 or $20, it adds up over time, and you will get used to it and not even miss that money. Make bigger savings deposits yourself too, of course. Also, if you get a pay raise, and don't urgently need it for day to day expenses, add that amount to your regular direct payment.
  
  
• If you get a bonus or any other payment that you don't need, put it into savings.
  
  
• Split your spendable income (after your bills, ongoing set expenses etc are taken out) into sections for each area of expenditure- such as food, entertainment, clothes. Once you have spent the allocation for that area "there aint no more!" That doesn't mean you have to spend it all each time- in fact it's better if you don't- or that you can't shuffle money from one to the other if you want (preferably, don't starve the family so that you can have those cute fluffy bunny slippers though!) You just can't dip into the savings! And it shows you exactly how much you can realistically spend. don't forget to allocate a bit to put aside for *emergencies*.
  
  
• Make sure you regularly discuss the family finances with your spouse/partner to make sure you're both "on the same page". Address any problem areas immediately, so they don't have a chance to spiral out of control. Once your children are old enough, you should involve them in discussions too. It's very important that children learn about money and how to handle it appropriately. Make sure you give the right messages about money- don't inadvertently give them financial hangups and disempowering beliefs! There are several good books on this kind of thing.
  
  
• Use a spreadsheet or other tools to track your money.
  
  
• Educate yourself about the right places to put your money, the various risks, and the wonders of compound interest! Don't "leave money on the table". Get motivated! Do it! Now! Every moment you wait... you waste.
  
  
• Make sure you get all the tax refunds etc due to you. Check you aren't over charged for things. Make sure you get paid child support or debts are repaid to you. Claim any government benefits you are entitled to- child care, family benefits, study benefits, job search allowances.
  
  
• Use your skills and hobbies to make some extra income. Teach- music, a language, a craft! Create- woodwork, knitting, candles! Supply needed services- child minding, odd jobs, lawn mowing, gardening, ironing! But make sure you aren't spending more on supplies etc than you make!
  
  
  Good luck on beginning your money saving venture. Don't forget to visit the other parts of this series.