I’m going to be honest. Saving is damn hard work. However, as explained by a recent domain article I read, it is possible to save enough to afford even the larger purchases in life like overseas holidays and first home purchases. Similar to Sasha, I have been able to devise simple savings strategies to ensure that I am able to achieve both my short term goals (new handbag, return flights to Amsterdam and education expenses) and long term goals (house ownership and weddings).
Here are my top 5 savings tips for Gen Y’s:
1. Make a plan and set realistic goals
It is important to develop a plan that you can stick to and achieve. Create 5 goals and prioritise them to make sure you focus on what is most important to you.
- Save 25% of my income
- Pay off ½ of this semester’s student loans
- Bring my lunch to work twice a week
- Save $5,000 by christmas
- Pay off my all of credit card/s on time
Analyse your current lifestyle and breakdown all of the financial aspects of it. Take advantage of these resources to help you budget:
- Home Budget with Sync– $4.99 (iphone/ipad)
- TrackMYspend– Free (Iphone/iPad/Android)
Spread Sheeting Programs:
- Numbers –Free on Mac or $14.95 for the iphone and ipad app (Mac)
- Excel (Office 365)– Free for students or $6.99 a month
- Budget Planner– Free
3. Reduce Your Impulse and Convenience Purchases
If you are use to purchasing convenient products on an impulse, this can be hard a hard habit to change. Try to think about a purchase for 2 weeks before buying it. With a little bit of organization and planning, you can save a lot.
Taking lunch to work – saves $10-$15/day
- Dinner party at home with friends instead of going out – saves $20-$200+
- Leaving home 10 mins earlier to avoid tolls – saves $10
4. Find a Better Deal
Bargain your current bills and compare alternative services/products to make sure you get the best value. Don’t forget to use online discount codes and coupons!
e.g. Comparing bank accounts with https://www.monetise.com.au
5. Affording vs Buying
Make sure you have the money in your account or wallet before you purchase anything. This way you will reduce overspending which saves you from interest piling up.
Join in the conversation below:
- What is your best money savings story?
- What are your long term and short term savings goals and what strategies will you employ to achieve them?