15 Tips to Save Money

There is a Jamaican quote that goes like this. “Save money and money will save you”

But saving money is not as simple as it sounds and many people struggle every day to keep the little green papers with them as long as they can.

Here we are giving 15 awesome tips to save money every day

1. Buy non-perishables in bulk

Economies of scale may sound like a sophisticated economics jargon but the underlining concept is simple. When you buy in bulk price per unit will be less. Price per unit is the key factor here and when you do that small maths for items such as razors, towels s, and soap it will always be a notch lower in a ten pack compared with a single unit.

2. Keep the car away

Use public transport as much as possible or even better, use a bike. If you can save around $5 on fuel and say $10 per parking each day, that’s around $4,000 saving per year!

Riding a bike is also a good alternative and will even work in favour of your health. Transport is responsible for 15% of Australia’s greenhouse pollution so you are also contributing in keeping our environment clean by choosing not to drive. 

BONUS Tip from our expert at Tax Agent Brisbane – If you have a business and you work form home then you can claim most of the home bills like electricity, internet, phone etc for the hours used to work in your business. Contact your Accountant for professional advice.

3, Make a shopping list 

Supermarkets and malls are designed by marketing experts and psychologists to make you buy more with their cross selling strategies. And we fall prey to their elegantly designed shelves with thousands of beautifully designed unwanted items.

Best way to do it is to make a shopping list of things which you really need before going to mall and always stick to the list.

4. Follow ‘Four weeks Rule’

Have a four week rule when you are thinking of buying an item that you really don’t need at the moment. For example, if you are feeling that you need to buy a spare couch, according to the four week rule you wait four weeks and see whether you still need it. Most of things we feel like buying now are mere temptations and after four weeks those temptations might be long gone. But if it is really an item that you want you will still want to buy it even after four weeks.

5. Hang out with friends at home

You don’t always need to go out to eateries and bars to hang out with your friends. Having a house party with few beers and home-made food can be so much fun, healthier and will cost you less.

6. Do not give in to your child’s demands 

Children will always stop by their favourite toys at the shop and may even push the parents to buy them by using their own techniques of crying or shouting. Sometimes it is of course ok to buy things for kids when they demand but not always. Parents should never feel pressurised by the kids demands.

Many parents are not sure how to control their kids and end up buying costly items for them which not only disturb the budget but also end up making their child more demanding in future.

7. Skip buying lunch everyday

Occasional dine outs are necessary part of life for a change and to keep you entertained but eating out every day can mess up your budget. Eating lunch outside every day may cost you around $10 per day and bringing you lunch from home may save you more than $2500 per year. If you skip buying a coffee every day, you will end up saving more than A$1,000 every year.

If you are buying lunch as well as coffee every day then you are spending around A$4k- $5k every year just on lunch and coffee with an added cost of occasional dine outs at a costly restaurant! Numbers speak for themselves. Think about it.

8. Be physically active

According to the World Health Organization, physically active people save about $500 annually in healthcare expenses. And a gym membership is not mandatory to be physically active. Simple acts of jogging in the morning, taking a swim or managing your garden would help you keep fit and cut down on medical expenditure.

9. Spend money on financial education

Yes. Sometimes you need to pay to save money. Not having the necessary education on tax systems, banking, insurance and money management would eat chunks of your money in various complicated financial arrangements. Hiring a good accountant may actually save you a lot of money.

10. No credit cards

Cash is what you have and credit is what you do not have. It is as simple as that. Credit cards are master motivators of spending what you don’t have and on what you don’t need.  Only when you are paying in cash you really feel the transaction and the weight of it .Make it a rule to use cash as much as possible in every transactions and it will act as a deterrent rather than a motivator for your unnecessary spending.

11. Pay bills on time

Lot of people end up paying penalties for using various utilities because of procrastination and simple laziness to pick up the bill and pay on time. Sometimes it is best to pay by direct debit but you need to be careful in this arrangement and need to keep track of how much bills you are paying. If that doesn’t work for you, try the reminder apps to pay bills on time.

12. Quit smoking and limit alcohol

On average a regular smoker spends 60-100 dollars every month to buy smokes. Not to mention, smoking causes a lot of health issues and hence can increase you medical or hospital bills a big time. Same applies to alcohol. So cut down on binge drinking and it will do a big time favour to your wallet and health. You should master the arts of self-control in fighting with these demons.

13. Be conscious about your little expenses

Tiny drops make a giant ocean and same applies to tiny bits of costs that make an astounding expense. Spending small money on buying apps, buying songs/movie online, purchasing extra channels on paid tvs, paying for magazines subscription and more.  These small purchases when combined can disturb your budget.

Best is to make a spreadsheet document of these expenses and see how much you are spending every week. This will give you good idea of overall expenses and manage your budget.

14. Learn Bargaining skills

small negotiations can save you as small as $5-$10 on small items while a very good negotiation made on a proeprty deal can save you around $10k- $20k or even more. Haggling is not a sin. Many vendors have a markup on products so that they can safely bargain on items within a limit. And if you feel you are not up for it they might rip you out mercilessly. Learn the skill, try and you may get lucky.

15. Make it a habit

Practising these acts of saving money should be a habit not just a random act. You should practice these methods like a mantra. Even if you fail in following few things just do not give up on all the other practices. And together they will work wonder for you.