Saving money is tough. Our daily expenses, mortgage repayments and spending habits all seem to keep us from putting something away in our nest-egg.
But while saving is tough, it’s important to have money stored away in savings for that rainy day.
Detailed below are five easy money saving tips that you can implement into your daily routine right now. Please feel free to add your own tips in the comment section below.
1. Cut down on unnecessary extras
Things like coffee, cigarettes and that premium TV package all add up. Look for alternatives such as having a banana instead of a coffee or having people round to your house instead of going out. Cancel that premium television package and stick with free to air. These little things can save you over the long haul.
2. Save with family and friends
Research has shown that people are far more engaged when working with other people towards a common goal. So, in order to save, it might be a good idea to do it with family and friends. We all love a bit of competition and this is a great way to keep you focused on your goal.
3. Change your savings account
An easy way to increase your savings is to switch to a savings account that has no fees and a good interest rate. Switching bank accounts could help you reach your savings goal a little quicker. That said, it is important to look at the fine print before making the switch as many institutions offer bonus interest for sixth months and then pull back the interest to below-average rates. Align yourself with a savings account that works for you.
4. Be more aggressive with your mortgage
Being strategic about your mortgage can be one of the best ways to save a lot of money. First you must change the way you look at your mortgage. Start embracing the challenge of paying it off. Adding an extra $100 to your monthly repayment can shave years and dollars off your total repayment.
Alternatively, research your current situation and see if there is another lender out there that can offer you all the right features for a cheaper interest rate. Keep in mind that loyalty benefits the banks, not you. Never forget that you have the power to change and if you aren’t getting the best deal out there, say something.
5. Talk to your Mortgage Choice financial planner
Visit our local Mortgage Choice Financial Planner, Judie Mullard, and she can assess your unique situation and give you the most personalised advice on what you can do to save some extra money.