How to cut your expenses, increase savings, or pay off your loan faster!

​You can make a huge difference by spending less, but this is not always as easy as it sounds.  An effective way to save is to reduce expenses, but you have a plan and have goals that drive you and keep you accountable (check in with them regularly to track your progress and celebrate your milestones!)
 
Here are top tips to cut your expenses and boost your savings!

Understand your spending
 
With all the cashless payments and credit cards, it’s extremely easy to lose track of how you’re spending money. Next thing you know, you spent it all on less important things.
 
A lot of online banking systems include tools to classify debit and make a budget, so make use of them! If not, you can download an app that helps you track your expenses.
 
Be practical with your essentials
 
Fundamental costs can't be avoided, however, they can be reduced. Here are a few examples:

• Plan for your groceries. You can make a grocery list, buy in bulk, set a budget for eating out or take-out to control your spending. Most importantly, make sure you stick to the budget!
• Move into a cheaper rental, share a house, or move in with your parents or relatives as a short term solution to support your longer term goals
• Find a way to reduce your monthly bills. Ask for discounts or check out other providers, maybe making the switch will give you more value.
• Use the car lesser than usual: take the public transport, carpool with colleagues, try walking or riding. You'll be surprised how much you can save.

Check out the budget planner on the moneysmart website, which is a great calculator, that won’t cost you a cent!

Make sure you pay off debts or credit cards on time to avoid paying interest.
 
Overspending

Set a weekly or monthly limit on less important things, you still need to have a little fun! It will be unrealistic to cut expenses if you spend too much on buying clothes, going out, or expensive hobbies. Reduce the limit over time once you get to manage to stay within the limit.
 
According to a survey, more than 1,000 Australians showed that 73% have a problem with overspending, mostly during Christmas and on holidays.
 
To reduce expenses on Christmas, make a list and buy planned items within your allocated budget - make sure to not go overboard, and plan during the year for these expensive periods…. We suggest putting away an amount every week or fortnight to a gifts account, which may only be $20-$40, but at the end of the year, you will have $1000 in your gift account, so you don’t blow your big picture goals and budget!
 
On holidays, pre-plan your trip then set a daily budget. Try your best to stick to it.

Reduce costs
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Go over your expenses on a monthly basis and look for areas to eliminate costs. Track your spending and update your plan if you keep paying for excess or downgrade if you don't use it as much and cancel unused services.
 
You should ask yourself: Are you getting value from your subscriptions? Are you using that gym membership? Is this necessary? Remember, if you could save more, you could buy that home, or pay off that home faster!

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