Tips to Help You Save Money

Tips to Help You Save Money

Why is saving so important to be creation of wealth? Well, if you save nothing during your working life, by the time you stop working you will have nothing material, regardless of what your income was.

Savings is more than just the money that goes into your piggy bank or passbook savings account, it's also the money that goes into your mortgage over and above the interest charge, into your super, into a sound investment, into a saving plan or term deposit or into a separate account for some special purpose.

Whatever your overall savings strategy, there are plenty of ways you reduce your regular level of spending and save without have to live like a monk. Try these.

  • Only buy items you need when you need them, that is, don't treat shopping as a hobby or leisure activity
  • Don't buy something unless you have to money to do so. Just remember the old maxim - if you can't afford it, you can't afford it!
  • Pay with cash, not with your credit cards. Credit cards make buying too easy and can be a real debt trap for unwary or compulsive shoppers.
  • Don't buy the first thing you see - shopping around is very important.
  • Ask for discounts on items like whitegoods, furniture, and even clothes. You'll be amazed how many shops are prepared to bargain and all you have to do is ask - they can only say 'no', and many won't
  • Wait for end-of-year and end-of-season sales before buying.
  • Buy next year's Christmas presents at the beginning of the year during the January sales.
  • Take advantage of bulk discounts, for example, carton prices on wine and beer.
  • Take your lunch to work.
  • Buy generic (unbranded or in-house supermarket brand) products. The quality may not be as high as some branded products, but for staples like flour, sugar and butter I can't pick the difference.
  • Shop in supermarkets rather than more expensive corner stores.
  • Be prepared to buy second-hand rather than new goods.
  • If you are a smoker, give up. Not only will it save you around $60 to $70 per week (based on a packet a day), you'll feel better and so will everyone around you. Put that $60 to $70 you save into your super - which you'll need to build up because you'll probably live longer!