Four ways to save money in 2015
If one of your financial goals in 2015 is to save money, have you worked out how you’re going to do it?
Here are four ways to save money in 2015 so your financial future looks brighter.
1 Set realistic saving goals
On New Year’s Day you may feel excited and upbeat about your resolution to save more money, but by early February the euphoria has worn off.
One way to avoid sabotaging your financial goals is to set small, realistic saving goals.
If your overall financial goal is to save $10,000 by December 2015, chunk this down into a monthly goal of $800, then a weekly goal of $200.
Having a clear weekly goal written in your diary each week, will keep you on track. And it will help you keep focused!
Knowing that you want to save $200 a week will help you avoid spending money on things you want, but don’t necessarily need.
2 Check all your insurances
If you’ve got a direct debit set up for your bills, you may not have looked at your insurance bills in great detail lately.
Set aside half an hour or so and look at all your insurance bills: from health cover, car and home insurance to income insurance.
As you look at what you’re paying, check that the insurance is covering your current needs and requirements.
For instance, if you’ve completed your family and still have maternity cover in your health insurance plan, consider changing plans.
Maybe you had a pay rise last year and your income insurance only reflects your old salary, consider changing your level of insurance.
3 Examine your monthly expenses
Look at your most recent personal bank account statement and consider what you’ve spent money on.
- Did you really need to buy four albums through iTunes at $20 each, two of which you really don’t like anyway?
- Were you charged extra for data usage on your mobile bill – if so, could you monitor your usage and cut back?
- Did you have to buy the two outfits from the online clothes store, when you only really wanted to buy one?
You may notice that the small amounts all add up to a few hundred dollars of potential savings a month!
4 Use the competitive market to save money
Interest rates have fallen in the last few years, so it makes sense to look at all your loans and check if you’re paying too much.
A monthly difference between a $500,000 standard variable loan (25 years) at 4.7% and the same loan at 5.7% is around $300 a month or $3,500 a year.
Next look at your credit card interest rate.
If it’s around 18% and has a large balance, consider talking to your bank about refinancing your credit card and even consolidating the balance outstanding into your mortgage.
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The advice provided in this blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. For our full disclaimer, please click here.