Four saving strategies for spring and summer
As the winter months come to an end in Australia, you’re probably antsy to get out in the warmer weather. But getting out more could also mean increased spending.
If you’re trying to figure out how to save this spring and summer, easy ways to get a boost include sticking to a budget, using credit card rewards, having social functions at home and saving on energy costs.
1. Stick to a budget
Sticking to a budget is easier said than done, right? But it does work, especially with new spend tracking technologies.
First, figure out your monthly income after tax. Then, make a list of monthly expenses, including housing costs and bills. Look at past statements to figure out how much you spend on groceries and other necessities.
Make firm commitments on how much you can spend in each category.
You’ll see how much you should have left over each month, and you can be mindful of unnecessary spending. Make firm commitments on how much you can spend in each category.
Pro tip: use a program like Money Simple, where you can track all of your financial accounts and your spending habits.
2. Use credit card rewards
Many people across the nation have credit card debt, which may stop them benefiting from rewards programs. Australia’s Securities and Investments Commission (ASIC) reported that one in six Aussies struggle with credit card debt.
However, if you can pay off your debt and begin to use your credit card almost like a debit card, you can earn substantial rewards.
Use your card as if it’s linked to your checking account, and pay it off once or twice a month. Most credit cards have a rewards system where you can get cash back on every purchase.
As long as you stay on top of your balance, you may never have to pay interest. You could instead cash out those rewards. Doing so may give your savings an extra boost without having to do anything but spend money normally.
Just make sure you don’t accrue any debt from one month to the next. And, watch out for credit cards with high annual fees.
3. Eat and drink at home
Eating and drinking out can really drain your account. Instead, try having friends over for a night in.
In 2016, the average household spent around $50 per week on restaurant dining.
Buy groceries more often so you won’t be tempted to eat out. An ASIC survey found that in 2016, the average household spent around $50 per week on restaurant dining.
During tight months, that extra money can really come in handy.
4. Save energy costs
Warmer months can be a great time to save extra on energy costs. Simple tactics you can try include using energy-efficient LED light bulbs or washing your clothes in cold water, Canstar suggests.
You can also review your current electricity and gas plans and see if you’re getting the best deal for your area.
This spring and summer in Australia, try these simple savings strategies. For more information about how to manage your money, sign up for Credit Simple today.