Top Ways to Cut Expenses and Increase Savings
Every little bit helps when it comes to saving for your deposit on your home and while going without the odd morning coffee may seem insignificant, it is amazing how a prudent approach to cutting expenses can help you save quickly.
One of the most effective ways to improve your savings is to eliminate unnecessary expenses. In order to do this effectively, you need to be able to understand where your money is going. Keeping track of expenses isn’t all that easily with plastic money and cashless payments. You can get a better understanding of where your money is going by making use of the many tools provided by online banking systems which help you to categorise and track expenditure. Perhaps an even better alternative is to download a money management app. There are a wealth of these available ranging from ASICs TRACK MY SPEND to Money Brilliant which logs directly into your bank and superannuation records.
Armed with the information of where your money is going – you can sort your expenses into necessary and discretionary spending. Savings can be found in both categories .
While there are some expenses that simply must be met, often there are savings to be found by
- Shopping around utility providers and comparing offers
- Choosing public transport options rather than your private vehicle
- Plan your meals in advance and shop accordingly. Shopping lists are a great way to cut out impulse buying.
- Assess your current housing and consider moving back in with parents or moving to cheaper rental
- Pay off credit card debt as quickly as possible to reduce interest bill
There is a potential goldmine in savings to be found when it comes to discretionary spending. We all have to live a little, but when it comes to things we enjoy, it’s easy to overspend. Clothes, jewellry, holidays and entertainment are all areas where potential savings can be found.
Finally, discretionary spending often results in extra money leaking away. Subscriptions tend to be allowed to run after their usefulness has well and truly passed. Gym memberships and online subscriptions are two such areas that often go unchecked.
There are savings to be found in every budget. Find yours today.