Bondi Homestyle's Money Saving Tips

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Top 3 Money Saving Tips.

Tip 1. Spend Less Than You Earn.  

The number one rule for saving. Sounds simple, right? It is simple. Anyone can spend less than they earn and you can too. I am going to show you how.

“How can I possibly do that ?” you ask. Maybe you have too little income, too many bills and no money left to save. Perhaps you have a good income but spend lots of money on lifestyle and have nothing left for savings.

We can all come up with reasons not to save. We can all convince ourselves that it is not possible. I am here to tell you that it is possible and we are going to start right here, right now.

First you need to select an amount to save each week.

Choosing an amount off the top of your head is fine if you already have a good idea of how much you are spending as well as areas you can cut back on. If you are not sure, you need to know how much is left after paying your necessary expenses. ( See Tip 2 “Know Your Expenses.”)

If you are on a tight budget select a small amount. If you have more money to spare you can select a larger amount. Make sure you select an achievable amount . If in doubt select a small amount, you can increase it later.

Now you have selected an amount to save each week that money is not available. You have no access to it. That money does not exist! This is how you must look at this money. For your spending purposes that money does not exist. You cannot use it or touch it. In your mind your income is lower.

You have taken the saved money away from your income and you now have a new, lower, income.  

Your real income is the new income and there is nothing you can do about it!  If it helps transfer the saved amount automatically to another account.

The main point is to readjust your thinking and spending to the new income.

Focus on the number one rule. Spend less than you earn.

Begin with small amounts and increase gradually. (See Tip 3  “Save More Than You Spend”).

We all want  the freedom to control our money and live the lives we want.

You know what to do. There is nothing holding you back. You can start small but just start. Start right now!

Tip 2. Know Your Expenses.

Choosing an amount to save off the  top of your head is possible if you already have a good idea of how much you spend as well as areas you can cut back on. However, to be sure that you can save the amount chosen you will need to find how much you can save after paying your fixed and discretionary spending amounts.

If finding and sorting through bills is a challenge, just start writing down in a diary the date, amount and which bill you paid. The important thing is to get started. Put your bills in the diary (either hard copies if you have them or just note down the amounts and name of each bill ) and check ahead each week for when each is due.

At the end of six months you will be able to easily note down how much is going out each week and month on fixed expenses. Keep doing it for a year to get a full picture of fixed expenses.

At the same time take note of how much you are spending on basics such as food (including eating out), toiletries, clothes,entertainment and gifts.

Remember to include birthday gifts and gifts celebrating major occasions. December and the New Year are examples of times when expenses can easily blow out.

The only way to know what your expenses are is to keep track of them and write them down. Do this the way you find easiest whether it is using a budgeting App, an online budget spreadsheet or simply keeping a paper record in a diary. Just get started!

Tip 3. Save More Than You Spend.

Saving more than you spend is both a state of mind and a practical way to think about saving. Focusing on saving can become a fun way to challenge yourself and see how much more than your nominated amount you can actually save each week.

Saving is not about depriving yourself it is about asking yourself “ Do I really need that … (fill in the blank)?”.

Often when you think about it you will realize that the “blank” is something that you will be better off without! You will be saving money and feeling better about yourself .

Who feels good after that greasy, unhealthy quick fix takeaway on a regular basis?

That cheap piece of clothing may be in fashion this season but what happens to it next year?

Hands up who enjoys flicking through 300 cable channels only to find “nothing” is on?

Live below your means and you will have more to enjoy!

Congratulations on taking the first steps towards your financial freedom and peace of mind!

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