I have always been a saver, whether it was for my first car, a music festival or a backpacking trip around Europe. It has always been something I have done well and been very beneficial to me. For my first 3-month trip to Europe, I didn’t have enough money to support my travels so I decided to get a $6000 loan from the bank. Even though I had the time of my life and would never regret going on that trip, coming back to Australia with no job and now a $6000 debt was not ideal. I know that everyone is different and some people struggle to save more than others so here are some useful saving tips I have used over the years.
- Have a goal or a deadline
Having something to look forward can be a great source of motivation to save! For example, booking your flight away can make your holiday seem more realistic as you are locked into a date to leave.
- Open another account for savings
Keeping your savings and your spending money separate from each other is going to help you out a lot. You should look at getting an account that you do not have access to with a card. I personally find it easier to have a savings account with a different bank to my spending money and I keep that card at home so I can’t use it. This psychologically tricks me into thinking that I have a lot less money than I actually do so I can’t keep spending.
- Learn how to budget
As I am a casual worker, it is hard for me to know how much I can actually put away each week into my savings so what I do is I work out roughly how much I can live off in a week. After I have added up my living expenses, I put the rest into my savings. I am usually pretty strict with my spending during the week and I have to be careful that I don’t blow all my money in the first couple of days or I’m going to struggle for the rest of the week.
- Do not eat out so much!
This was a big one for me, as I love to socialize, especially when it includes food. Who doesn’t! But I did notice that this is where a lot of my money was going so I had to cut back on the morning coffee dates and going out to dinner a few times a week. This was easily replaced with girl dinner parties making home cooked meals together and buying a bottle of wine for half the price you would pay at a restaurant. I also got myself a Nespresso coffee machine that saves me $5 a day on coffees!
- Don’t spend so much on a night out
Like most young people; I also like to go out at night and party. This is also a huge money eater so be smart when you go out, you do not need to spend $300 to have a good night! I always pre drink before I go out as this saves me from buying overpriced drinks in clubs. Another good way to make sure you don’t get white girl wasted and shout the whole bar a drink is to only take a bit of cash out with you. I also take a flask with me into clubs and buy soft drinks while I’m out so I can still stay drunk all night.
- Never have fear of missing out (FOMO)!
There are going to be times when you don’t have the money to do everything your friends are doing so stop having FOMO and remember that you are saving for something that is going to benefit you in many ways!