Some could call me a lady of leisure, others would probably call me “really bad with money and can’t save”. Actually… I’d probably call me “really bad with money and can’t save” too.
I love money, and… I love spending it. Constantly.
So that’s why when I need to start saving for something, I usually start with $0 in the bank, oh and I also blow my next pay because I’ll “be saving” from then on, so I need to treat myself. Terrible right? So how do I, of all people manage to save?
Have a realistic savings goal
If you need to save $10,000 in 6 months, and on average have a salary of $500 per week, you’ll need to save minimum $416 per week. That gives you $84 spending money. Now include your bills and petrol, and rent/board. That’s nearly an impossible way to live. You want to try and live comfortably and happy while placing away a good amount of savings. You don’t want to resent having to save your money each week. Now in saying that, if your someone who is really good with their money and doesn’t need to pay for or buy much, you could be 100% fine with living on little. Either way is fine. No way is the wrong way!
Have a savings timeline
When we started to think about relocating to the UK, we decided together if we saved at least $20,000 before we left, we’d be happy. We could have saved double that, but we chose not to put too much pressure on ourselves. We had 32 weeks (8 months) to save $20,000 on two salaries. We were comfortably putting in $600 per week, and after we paid off all of our loans, we were comfortable putting in $1000 a week. Having a goal made saving that much easier.
Pay off all your debts
Talking about debts, we decided to pay everything off except for my student loan. At first, you’ll feel like all your doing is paying your loan off and not saving, but in the scheme of things, your not going to be paying as much interest, so technically your saving money.
Stop buying that $5 item every day
It could be coffee, bakery, it could be anything else that you buy daily that only costs around $5. At the time, it’s only a measly $5, but at the end of the week, that’s a total of $35, $35 over 12 months? $1680 extra you could have in your savings account!
Go out for lunch once a week, twice max!
For those of us who live for brunch, lunch and everything in between, cutting out the daily restaurant or cafe visits are hard. I struggled with this the most. A fear of FOMO had me constantly pushing my weekly budget, and yes, I fell off the wagon one too many times. Spending a limit of $40 for brunches throughout the week, per week is a good balance, better yet, spending $0 a week is better. $2080 extra you could have in your savings account, without brunch!
Buy something you really want, once a month
Clothes, shoes, the new iPhone X (just putting that in there because I had to convince my partner to let me touch my savings…). Buy that something you really want, every month. That way, you’re getting something new every month and it’ll help with those urges to buy. It might also be good for your wallet in the future! Remember when your parents used to say to you, find something you like at the mall and go home, the next day, if you still want it, buy it! That motto works for me every time!
Sell things you don’t need any more
Clothes on the Facebook marketplace, furniture on Trademe or eBay, makeup on facebook communities, shoes, anything you don’t need anymore that’s in good condition, sell. It’s not worth anything sitting in the bottom of that wardrobe of yours!
Save as much as you can, when you can
Just remember costs will constantly pop up out of nowhere, your car will probably break down before you leave or you’ll need to fork out for a dentist bill… silly little things that no one thinks of. So when you have those extra few dollars, and that Krispy Kreme donut is calling your name, just think twice (and buy that donut… I mean.. save!)
In the end, every decision is up to you. Spend as much as you want or as little as you want. This is just a simple little guide to how I managed to turn myself into a savings machine! (well…kinda). Just remember, if you put your mind to it, you’ll be able to save all the money you need!
M x
