If you’re like most people, saving money doesn’t come naturally.
And when you’re trying to put some extra money towards securing a deposit and a home loan, every dollar counts. But it needn’t be so hard.
Check out these pain-free tips from UBank to help you save extra money, without even realising it.
Use actual cash
The problem with debit cards and credit cards is that you never physically see the money you’re spending.
Tap, tap, and away you go. Retailers love it, but your bank balance and savings won’t.
Take out a small amount of money at an ATM and use that to buy the things you need. Picture: Getty Images
So why not go old-school, and deal only in cash? Take out a small amount of money at an ATM and use that to buy the things you need. Handing over actual notes is a small mental barrier that might stop you splurging.
Having larger notes, like $50 or $100, is another handy psychological deterrent, as many people are reluctant to break them.
Check your bank statements
Want to unlock some money you didn’t even know you were spending? Sift through your quarterly bank statements, and look for recurring expenses that you no longer need.
How often do you sign up for a gym membership or an online subscription and then stop using it, but fail to shut off the weekly or monthly payments?
The same goes for bank fees. Are you being slugged with regular fees that you weren’t aware of? Would you be better off with your money in a less costly account? It pays to check.
Would you be better off with your money in a less costly account? It pays to check. Picture: Getty Images
Set up an automatic transfer
It’s a staggering statistic that 35% of Australians don’t have a dedicated savings account, according to UBank‘s research.
If you don’t, you stand a good chance of winding up living paycheck to paycheck, as your savings will never be separate from your living expenses.
So start by opening a savings account, and then set up an automatic transfer, so that a set percentage or amount of your weekly pay is transferred into the savings account on payday.
You won’t miss that money, as you’ll never actually see it in your day-to-day account, and you’ll quickly learn how easy it is to live on slightly less each week, while banking thousands in savings every year.
It doesn’t have to be a huge amount – $20 a week is better than nothing. It’s about creating a habit, which is one of the fundamental principles for successful saving.
It’s a staggering statistic that 35% of Australians don’t have a dedicated savings account. Picture: Getty Images
Make yourself accountable
If you don’t think you have the willpower to keep your finances on the straight and narrow, enlist the help of someone who will.
It needn’t be difficult. Just write down your expenses each day and share them with a family member or friend. Giving someone else visibility over your finances can be a powerful way to stay disciplined about your spending.
Emotion can play a major part in impulse buying, and creating a reason to think twice about making those purchases could be enough to save you some significant money throughout the year.
Seek out a cheaper loan
If you want to save money well in advance, do your homework and seek out home loans with lower interest rates.
All home loans are not created equal, and a home loan with a lower interest rate will save you tens of thousands in the long run, without you even noticing it’s happening.
Be organised
The easiest way to save money without even realising it is to simply spend less of it, which you can easily achieve by planning ahead and being organised.
For example, if you buy ingredients for all of your weekly meals at once, you could save more than $50 a week in comparison to doing four or five individual trips to the supermarket, as well as a couple of nights of eating out or ordering takeaway.
And rather than throw the leftovers away, slip them into a container and take them to work for lunch – there’s another $10-15 you’ve just pocketed without lifting a finger.
There are lots of little things you can do to save more money:
