Four Simple Strategies to Help You Save Big
Saving big doesn’t mean restricting yourself to a diet of baked beans on toast. While little things add up, the biggest savings are often made in the big picture areas like housing and transportation. We take a look at four simple strategies that will help you save big, and the best part is you can start implementing them as soon as today!
Strategy 1: Cut your housing expenses
Housing makes up one of the biggest expenses and therefore reducing this cost can equal big savings. Consider your current living situation and how you could make changes to reduce your housing expenses.
How much space do you really need? Downsizing to or buying a smaller property could save you thousands. If you have room to spare, consider renting out a room to reduce your rent or provide additional income.
Where do you need to live? Popular suburbs come with a price tag to match. Look to surrounding suburbs for reduced housing costs, or for really big savings, move to a less desirable area for a time and reap the financial benefits.
Spending Christmas with the folks? Rent your place out on Airbnb during the holidays or over weekends and enjoy some extra income to reduce your overall housing expenses.
Strategy 2: Cut transportation costs
Transportation is another big cost for Australian households. Leasing, buying and running a car are all big expenses, in addition to tolls and insurance. Review the costs associated with your car. You may be able to cut costs by choosing a more efficient vehicle, increasing your excess to reduce insurance premiums and choosing public transport.
Consider whether you even need a car, or perhaps if your household is running two cars, could you sell one and get by with one car?
Weigh up the cost of your daily work commute vs. housing costs close to your work. It may be viable to pay more in housing if you can reduce your transport costs to and from work each day. Other options may be walking to work, catching public transport or avoiding multiple toll roads.
Strategy 3: Increase your income
Cutting costs is important but living on a shoestring has its limits. We require a certain amount of money to live comfortably each day. The good news is, you can always earn more money. Unlike cutting expenses which is finite, earning money can be infinite if you have the motivation to do so.
Start a side business, consider an additional job, complete additional study or a course to retrain in a higher paying profession or improve your skills and money-earning potential in your current profession. It may sound daunting, but negotiating a higher salary is often an untapped goldmine. Even a small increase can make a big difference to your savings. Working for yourself also has the potential to increase your income.
Strategy 4: Invest and bank your savings
By this stage you may be thinking, is it all worth it? I’m living in a shoebox, catching public transport and packing shelves at night. Well hopefully with all these changes you are starting to make some big savings. So, what should you do with your additional cash? Invest!
Investing your money can see you reap the benefits of your sacrifices down the track. Consider an automated system that allows you to sit back and enjoy the benefits that come with time. Investments as well a high-interest bank accounts are great options. You can re-invest the earnings from your investments or enjoy the benefits of your hard work. You can put your savings towards a house deposit or even plan for an early retirement, the choice is yours!
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
If you’re trying to save, there are many ways we may be able to help. From refinancing to investing, you can contact us for information about the best options for you when it comes to your property decisions.