Nowadays, saving money is a plan that every person wants to achieve, however frequently it can be a difficult task for many individuals. Mortgage repayments, bills, food, and everyday essentials build up quickly, leaving most households with little to no savings. Having the capacity to save money and enhance your life appears to be a paradox, as we usually associate a better life with spending more money! In spite of this, small lifestyle alterations can have a remarkable effect on your savings balance with time, and investing these savings wisely will certainly improve your life in the long-run. All it takes is some willpower, commitment, and education.
With the new year upon us, now is an ideal time to review your financial position and plan to keep an eye on your spending patterns and cut down on needless expenses. After all, saving money means earning more than you spend, so here are the top ways you can save money in the new year to secure a better future for you and your family.
Assess your financial situation
If you don’t understand your financial circumstances, then there’s probably no way that you can improve it! Having the ability to make reliable financial decisions begins with education and understanding where your money is being spent. Most of the time, it’s tough to keep track of our expenses, so it’s a smart idea to start keeping your receipts and overviewing your expenses weekly to acquire a better understanding of your spending habits. This is the most crucial step in being able to save money. Now, let’s uncover some specific money saving techniques.
Saving money on food is a lot easier than you think. The trick is to arrange your meals a week in advance before you head to the supermarket. Once you’ve planned your meals and the appropriate ingredients, prepare a list and stick to it! Don’t go grocery shopping starving either, that’s a sure way to spend unwarranted money impulsively. It’s also a good idea to have a paper and pen in the kitchen area, so when you run out of a particular ingredient, you won’t need to make a second trip to the supermarket in case you forget.
Electricity is another simple way in which you can reduce expenses by making some small modifications. The most useful way to save electricity is by turning off home appliances at the power point when they’re not being utilised. Even if the appliances aren’t being utilised, an active electricity socket nonetheless uses electricity, and these expenses can really build up as time passes. Alternative ways to conserve electricity is to use fans rather than air conditioners, turning off lights that aren’t being used, using hot water bottles as opposed to electric blankets, and using a clothes line as opposed to a dryer.
We all have to let off some steam after a hard day’s work, so a glass of wine and some cable TV suffices for most people. Having said that, cable TV is a tremendous expense that is barely used to its full potential. Look into switching to streaming services like Netflix or Hulu which charge around $10 a month as opposed to the average $70 a month for cable TV. That’s a saving of over $700 a year alone. Furthermore, instead of dining in restaurants with friends once a month, try hosting a dinner night where each person brings a dish and their beverage of choice. You can rotate hosts, save stacks of money, and never need to worry about being too loud!
Invest your savings
While the above suggestions are far from comprehensive, saving money by making simple changes gives you more financial possibilities to improve your life. You could use these savings to indulge in a family holiday once a year, or you might choose to invest your savings in a diversified investment portfolio. Whatever you chose, the fact of the matter is that we can all make small sacrifices to save money which can be used to enhance our lives.
Dealing with Debt?
If you’ve found yourself in a position where you’re repeatedly struggling with debt and can’t see any way out, there are numerous options available for you. You don’t have to live your life in fear and stress, and the faster you act to fix your situation, the more possibilities will be available for you. If you require professional advice on any financial distress that you’re currently facing, don’t wait any longer. Get in touch with the specialists at Bankruptcy Advice Perth on 1300 879 867, or visit our website for more information: www.bankruptcy-advice.com.au/perth