Hello Queens! We're all trying to be better at saving money, right? I think that has to be one of the most common new years resolutions, and I have some tips for you to try and keep it up. They're not exactly groundbreaking tips, but if you're anything like me, you're a struggling university student with expensive taste and no money to burn, and it can really make a difference over time. Over the past year I've stuck with seven easy-to-follow steps that make my bank account a little easier to look at, and I wanted to share them with you.
1. Opt to Never Use Change
What use do those gold coins have in your wallet? Have you really thought about it? You might dig them out of your purse to pay for a coffee, or a quick snack in a vending machine, or street parking (My thing is hoarding gum. I have about 6 packets of gum at the bottom of my bag as we speak). The truth is, it does add up eventually, and there are cheaper alternatives. Perhaps bringing your own lunch to uni, work or school. Or taking public transport occasionally instead of driving in. Maybe make your own home brew instead of buying a coffee.
At the end of each day, I empty the change in my wallet and put it in a piggy bank. Rather than making your purse heavier and burning through your coins, why not save them up for a month? Banks are beginning to bring in those neat coin deposit machines now, so every month on the 1st I tip the change from my piggy bank in, and it always astounds me. My January sum was $58. That was $58 I wouldn't have had if I spent my change on a coffee every morning. I feel like this tip would work especially well for those of us who get tips at work. Empty those tips into your coin jar every night and you'll have a little extra money to cash in!
2. The Cash Envelope
One of my favourite tips is the cash envelope. If you're grocery shopping every week, formulate a budget for yourself (a reasonable one, not one that will leave you too short). Once you've decided how much you're allowed to spend, get the exact cash out. For example, if you set a budget of $150 for groceries, get $150 cash out, put it in an envelope, and leave your wallet at home. This will force you to only spend within your means. It should make you more conscious of what you're buying (what you need vs. what you want). As long as the budget you've set is reasonable, with a little bit of wiggle room, you shouldn't have to take a second trip to the grocery store. It eliminates what I like to call the magpie syndrome - shiny new thing? You don't need it. You can't afford it. You've only got your cash envelope, remember?
3. The Budget Book
This tip is completely based off guilt. Retain a receipt for everything you buy. It doesn't matter whether it was a $2.50 bottle of water or a tin of mints, remember to keep the receipt and staple it into the back of a notepad, or into an envelope. At the end of your day, look through your receipts, write down what you've spent, and tally it. I've been doing this for a few weeks now, and with every day that passes, I've found that I've stopped buying things I don't need, and I've stopped feeling guilty and cringing over my tally. If you see exactly what you're spending, you'll see how much of it goes to waste.
4. Open a High-Interest Account
At the start of the year I opened up an account that simply rewards me for saving. It's a high-interest account, so when I try to withdraw cash from it, I won't be awarded my interest at the end of the month. The more you put in, the higher the interest you'll gain. Some accounts are set up so you have to deposit a certain amount of cash every week, and others you could easily just transfer $1 and still get the interest. Obviously the more you deposit the more you gain, so this one's a win-win situation. You get rewarded for saving - it doesn't get easier than that.
5. Leave Your Wallet at Home
Okay, this one sounds like an obvious one, and you might be rolling your eyes as you read this, but "out of sight out of mind" is a very powerful mind trick. I personally work in a shopping centre, so when I enter work I'm assaulted by a shop-a-holic's dream. It takes every crumb of self-control to not walk away with bags of shopping. If I don't bring my wallet, it eliminates the temptation. Or rather, it eliminates the power to act on it.
6. Delay Your Purchases
This tip is personally the most difficult for me to obey. If I want something, I want it right then and there, so this is reserved for people with the virtue of patience. If you see something you want over $150, wait 10 days. If you still want it at the end of those 10 days, reward yourself with it. Most of the time, you'll find that waiting cancels out the temptation, and makes you question whether you really need it. If you find that you never really needed it, you've saved yourself a whole lotta cash. This tip could be customised to any length of time - if 10 days is too short for you, try a month.
7. Change Your Account Names
This one's quite simple, but it's one of my favourites. Customise your online banking account names to things you'd like to save for. For example, I changed my regular savings account to 'Car Fund', and it reminded me of my goals to save for a new car. Every time you open your online banking, you're greeted with goals. It's a simple and positive way to adjust your mindset towards saving.
Let me know if any of these tips helped you!
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