Money, money, money!
While the song by ABBA still rings in your ears, you can’t help but wonder about all the things you could do if you had a little money.
Unfortunately, what the song fails to address is what happens to those trying to live life by spending more than they should.
Overspending is ultimately the quickest way of creating debilitating debts.
Our impartial and experienced trustees are dedicated to helping you stop incurring unnecessary expenses.
Here are our 5 tips to keep your cash safe from yourself!
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#1. Set up automatic savings
The first rule of cutting down your spending is to make sure you don’t have money to spend in the first place.
Rather than hiding your income from yourself, you can set up an automatic deposit to your savings account.
On payday, the amount is directly moved into your savings so that you can’t be tempted to spend it.
#2. Don’t ignore the small things
It’s easy to overlook small purchases.
A daily cup of coffee at your favourite place on the way to the office can add up at the end of the month.
Extra sprinkles and cream in a large XXL cup?
You can find that people are sometimes spending over a thousand dollars a year on a simple coffee-to-go.
Keeping track of all the little extras you buy every day can be an eye-opening experience.
The most commonly overlooked expenses include:
- Lunch sandwich or salad from a shop or a food truck;
- Takeaway drinks in town;
- Rewards as a coping mechanism for stress;
- Small bets and controlled gambling games (such as buying a scratch ticket regularly).
#3. Don’t put all your eggs in one basket
If you are planning to go out, it’s a good idea to take preventive measures and avoid risk.
Set a spending limit for yourself and carry the money in your wallet.
If you decide to spend no more than $50 for the night, you should withdraw the amount and keep it with you.
To avoid unnecessary temptations, leave your bank cards and any additional cash at home.
The party is over once the wallet is empty.
#4. Track your spending
Keeping track of all expenses gives you an overview of your weekly or monthly budget.
Ideally, you want to plan all your expenses for a set period, using any budgeting tool that works for you.
Some people rely on a free money management app to keep an overview of their budget.
Others prefer an excel spreadsheet or a simple pen and paper list.
#5. Plan how to save money
Saving money is the opposite of spending it.
Learning to make saving an everyday habit can change your approach to money management and support financial stability.
Something as simple as keeping a money pot for your unspent dollars at the end of a grocery trip, for instance, can rapidly build a stash of cash.
Money management is tricky.
If you’re dealing with debt and wondering how to save money to recoup your debts, why not discuss debt relief solutions with a trustee?
A free consultation is all it takes to save cash through effective debt relief.