29 Jan A Foolproof Formula for Saving Money in 2017
Financial resolutions are easy to make but harder to stick with. Here we’ll look at what you can do to ensure that 2017 really is the year that you make lasting improvements to your finances.
Know where your money goes
The starting point for saving money and paying off debt is to work out where your money is going. Use a free app like ASIC’s TrackMySpend to record your daily expenses and track spending by categories. Once done, you are now one step closer to setting up a budget.
Use technology to do the work for you
Thanks to technology we can say goodbye to the daunting task of setting up an excel spreadsheet DIY budget. There are now countless online-based budget planners and calculators that have done the hard work for you. Many of these tools will show visualisations of your financial data, allowing you to more easily pinpoint overspending. Free tools include Pocketbook, Mint, ASIC’s budget planner, Microsoft’s Personal Budget WorkSheet template and Google Doc’s Simple Budget Planner.
Automating your payments is another way technology can help. Automatic transfers will keep you from accruing late fees and discourage you from spending money needed for paying bills.
Work backwards from your goal
There’s no point in telling yourself you want to try and save more money if you don’t have a concrete goal to work towards. Decide on a specific thing you want to save for and work backwards from this goal by finding out how much you need to save every week to get to it.
Find easy ways to reduce spending
Are you tired of hearing about money saving tips like cutting back on convenience food, bringing lunch to work, repairing old clothes?
While these are all great ideas, they are often hard to stick to because they impact the lifestyle we are used to. On the other hand, doing some internet research and choosing a less expensive electricity supplier may bring instant savings and minimal impact. The same goes for reviewing any ongoing bills: gas; water; home loan; internet; credit cards; bank accounts; life insurance; superannuation; and car, home, and health insurance.