5 Personal Finance Hacks To Help You Save
Nothing is quite like budgeting. Not only is it sometimes extremely boring, you begin to wonder if there is any point saving a few bucks here and there. Although it may not seem like it, the answer is a resounding YES! Every dollar you save is another dollar in your pocket and more importantly if you put that dollar into paying extra off your mortgage the results speak for themselves. See the example below.
"Data from financial comparison website iSelect shows on a $300,000 30-year home loan the average variable rate is 4.35 per cent and the monthly repayments are $1493."
"If a customer pays an additional $50 per week their monthly repayments would be $1710 and they would save nearly $60,000 in interest charges by paying the loan off six years and eight months early." Excerpt from article, see link http://ow.ly/4mPT6D
So here are the 5 Personal Finance Hacks To Help You Save. Now just because they sound easy doesn’t mean it is in practice. Most people would look at this list and believe they do most of them. Track you expenses for a month to see how you really spend and then apply these principles for greater affect.
1) Set aside an amount weekly for savings – A basic principle that is hard to stick to. A sure fire way to ensure you complete this technique is to set up an automatic transfer once you receive your weekly pay cheque. That way you don’t have to think about it. Make sure this amount is achievable so your not drawing it back out after a few days.
2) Complete a budget – As recommended above, tracking your spending is a critical fist step to creating a budget. Be honest with yourself and ensure you allow for all the necessities. It’s also important to allow for entertainment and to remember your budget is there to guide you, not control you.
3) Spend less socialising but don’t cut down on fun – Now the fun stuff! One of the most important steps is ensuring you have an achievable entertainment budget because lets face it, no body likes being antisocial. Once it is set for the week or the month, stick to it and plan ahead. Simple suggestion – BBQ with friends at home vs. eating out at an expensive restaurant.
4) Consistency is key – Consistency, consistency and consistency. Another boring one but the most important. This is why setting realistic savings goals are critical. You want to achieve these budgets on a week-to-week basis. Not only will you be moving forward, you will get a sense of achievement as you go.
5) Set your goals and celebrate them – Life is short so there is no point being a robot. When you reach savings goals whether that be a deposit for your first home, for a holiday or mortgage goals, celebrate it. You have earned it.
So that’s the list. Not an exhaustive one but one with some solid principles that will be sure to hold you in good stead. Remember to consult experts in their field for further advice. Happy savings.