Quick Tips on How to Make and Save Money!
I'm an analyst, so it's not totally unexpected that I keep a beady spectacled eye on the money I spend and how I spend it. Or more to the point, *don't* spend it. I get a tiny little adrenal kick when I slowly tick over the savings targets. Oh, I just saved $100!! I AM QUEEEEEN!! <Joyfully imagines squandering money frivolously for 2 minutes>. Not today eBay!
Over time I've accumulated a number of financially savvy activities, both income earning and techniques to avoid the DFO blow outs (but seriously, how awesome is my new dress!). Enjoy, and feel free to give me feedback on any of your savings tips!
Do things you love which generate income
One day, maybe someone out there will pay me to write professionally (please! anyone? give me a writing job!). In the meantime I have some side projects which give me a savings boost. My Grandfather refused to let me study veterinary science. He said it was a man's world and I couldn't hack the hard work and excrement (though I have experienced enough of that from of the mouths of recent terrible Tinder dates). So instead, I pet-sit where I reap the joys of spending time with these beautiful animals, without the poo, mostly. And it's a hobby! Non-taxable income.
Homestay Student Accommodation
See my previous post - Homestay Income and Tax - similarly to above, this is a non-taxable income earner for accommodating up to two students in a household. So many benefits, culturally, emotionally and physically - hotpot ring of fire!
You only pay tax once from a single employer
I am in a fortunate position, working in higher education. I can tutor of an evening and still only pay a single tax payment through my fortnightly pay cycle. I've read a number of experiences of multi-income earners being struck with underpayments of tax, and thus a tax bill at the end of the financial year, due to confusion with tax-free threshold. See the ATO website for further details on this little doozy.
Might as well look like this... Cheap car. Image Credit: Igor Ovsyannykov
Drive an economical car
I hate this one, because I'm a total car snob. I looovveee the feeling of a beautifully designed leather hand stitched seat on my decadence-enhanced (I ate too much) behind. Running my hands over the sightly worn matching cover of the tightly-bound steering wheel, luxuriating in the climate-controlled, sound-balanced interior of a European styled automobile.
But I drive a Suzuki Swift. Because, f*ck, it's cheap. The End.
Pay off your credit card each month
Most financial experts suggest credit is a terrible thing to have. Maybe it's because they know we're all a little frivolous (see DFO comment earlier) and perhaps we're unable to control our purchasing urges, neglecting to pay off the outstanding debt. I disagree. I put most of my bills on credit, and I pay it off religiously before the 55 days interest free period has elapsed. In the last few years with the points I accrued, I managed to secure flights to Europe for free. Niiiice.
Saving your change
During the same year, I collected my change in a pig-shaped piggy bank. This thing is about the size of a medium watermelon, it's not petite. This gargantuan porcine wasn't even half full when I decided to crack the cap and unleash the spoils. $2k later and I had a good chunk of my spending money for said holiday. It's amazing how quickly those funds add up!
Use vouchers
I get teased for this one, but see post Kickass Fitness. F45 is a fitness revolution, however it's a luxury I simply cannot afford. $55-$65 per week for training is just not financially achievable for me right now. Groupon saves the day! $19 for 4 weeks of training? Absolutely! I only buy things I would normally commit to if it weren't for the purchase price, and so far I can only recommend the experience of using voucher sites having never been gypped by an organisation who has gone bust, or had a meal which wasn't worth the original outlay.
Offset Accounts for Ongoing Savings
For those with a massive IOU to the finance sector - thank you for providing my housing Bank Masters - an offset account is a savings or transaction account attached to your home loan, enabling you to reduce interest calculated on the balance of the principal. If you have a $500,000 home loan and $50,000 in savings (HA! I wish!), interest is only calculated on $450,000 of the loan. All of my transaction accounts (more on them below) are offset, as thankfully with CBA you can have an almost infinite number for squirrelling funds.
Keep a Budget Spreadsheet
Speaking of squirrelling.... I have a granular level spreadsheet which itemises my necessary and luxury (waxing is not a luxury!) spending. I list down to the fortnight all known car, home and lifestyle bills as well as entertainment and income. I then colour code them to "Automatic Payments" which can be deducted from one of my offset transaction accounts, and a "Manual Payments" version of same. An example of manual payments is the registration for my car which can not be paid on credit. Each fortnight I put away $28 into my Manual Car/Home account to ensure I have the necessary $750 for registration at the end of the year. As this is offset against my home loan, I'm not missing out on the interest savings previously discussed.
This one probably costs $20. Image credit: Anete Lusina
Food Plan and Brown Bag
Coffee costs $5? FIVE dollarydoos? I read research the other day to suggest the production cost of coffee including labour and a take-away cup is approximately $1. So with the addition of something delicious from the display cabinet on the right hand side of the register, my breakfast is approximately $15. FIFTEEN dollarydoos? From my budget spreadsheet, that's approximately 10% of my entire food budget for the week. That really puts it in perspective for me. Brown Bag. Plus then you're in control of those items which make gym time sooo much more difficult.
Free Events
I'm a sucker for a cheap night out because despite stingy me being a nana and not allowing frivolous me to go crazy, I still have an all consuming desire to have adventures and enjoy myself. Things like the free comedy at Brisbane's Powerhouse every Friday night, or Green Jam the free music events at QPAC are enough to satiate my need to be entertained, and I can afford to have a wine on the side! FIFTEEN dollarydoos? Ok water.
Carpool
I work on the south side of Brisbane and live on the north side. While this is not the appropriate time to initiate Southside vs Northside Brisbane fisticuffs, the expense of driving to work over a significant distance has been slightly negated by my taking on a legitimate hitchhiker. My work buddy and I have worked out a pretty good system and the casual conversation definitely makes the drive go faster. (Northside for life!)
Holiday on a budget
Anyone who has left the confines of this island paradise knows how expensive it is to fly internationally. We're so bloody far away from everything! While this tip might not be for everyone on a thrifty spending plan, I've let the airlines dictate my holidays for the past two years. In just under a month I'm going to Japan for the first time thanks to Jetstar and their return for free flights. This has given me the chance to experience an amazing cultural wonderland on a budget. I've booked flights, accommodation and all internal travel (bullet train, WOO!) for two weeks for a beggarly $1500! Just use common sense when it comes to terms and conditions, and remember to check if it's the monsoon season and that's why flights are so cheap!
GivE yourself an allowance and savE everything else
As you've probably worked out by now, my self control is a little flexible. There are some weeks when I'm a martyr, I scrimp and save, decline social evenings, collect my change (keep an eye on the ground just in case!) and use all of the leftover vegetables on the verge of becoming a little bendy in the crisper drawer of my fridge. Annndddd then there are the other weeks.... Cue the arrival of my new Oroton handbag and matching purse. But it was on SALE! Like seriously, 75% off.
From the budget spreadsheet above, I have a very good idea of how much I can save each fortnight from my income. Everything including this saving figure is then transferred into the appropriate accounts and I am left with an allowance! With this enforced monetary control, DFO excursions are no longer an unexpected extravagance, but are a tidy little reward for the control I have over my financial life!
P.S. Don't take my advice as gospel, I'm just a layman saver :D