Feeling the pinch of rising living costs? Don’t wait until it gets on top of you, start reviewing your costs and getting ahead of your budget now.
Full Disclosure – I am not a financial advisor, just simply sharing my own experiences.
1. Set a Budget
I know, pretty obvious right! But, in my opinion, where most people go wrong is they don’t consider a detailed budget or they set a budget that’s not achievable.
You need to set yourself up for success but it’s hard. It’s like going on a diet, you need to consider everything you spend and you need to make decisions about what you’re spending money on. It can be hard, to be honest about what we are spending but it’s critical in understanding your spending habits.
If you need help building a budget go to my previous blog where I share 3 Steps To Creating an Household Budget That You’ll Actually stick to
2. Review your Bank Statements
This is a great way to really keep track of spending and also to see if you have any ongoing subscriptions.
Start to trim the fat and cancel any ongoing spending that’s not necessary. If this process makes you feel anxious then just take it one month at a time.
3. Manage Your Debt
If you have been subsidising your income with loans and credit cards then you may be feeling the weight of debt.
Start speaking to your lenders and banks to discuss hardship arrangements to help ease the burden.
Explore ways to consolidate your debt to help manage payments and lower your interest rates.
4. Leave your Bank card and Credit Card at home.
Ok before you start running to the exit hear me out.
A lot of what we buy is fairly automatic and mindless. Especially now we have tap and pay or apple pay, it’s so easy to sign up for a subscription or pick up some extra items because we effectively have money on tap.
So if you’re someone who finds it far too easy to pull the card out whenever the desire hits then try this.
After payday, withdraw the cash you have budgeted for your entertainment expenses, clothes, coffee or other sundry items.
Allocate the cash into envelopes for each of the budgeted items you have for the month and when you head out take whatever cash you have budgeted for the day from that specific envelope and when you return home put any leftover money from that budget back into the envelope.
You will be surprised at how your buying behaviour will change when you realise you have a set budget and once the money is gone, it’s gone.
5. Review your insurance policies
Review your insurance policies and speak to your insurer to see if you’re able to bundle any policies or reduce your costs in any way. Shop around and compare other policies in case you find a more competitive policy.
6. Review Your Energy Costs
Find ways to save on your electricity by turning off appliances at the switch, unplug chargers when they’re not in use and turn off lights when you leave a room.
If you’re in Australia, head to Energy Made Easy to compare your energy plan and make sure you’re on the right plan for you.
7. Plan Meals
Being organised is a great way to ensure you do not impulse buy and gives you more choice.
Plan meals in advance and only buy what’s on your shopping list.
NEVER shop when you’re hungry! It’s a recipe for overspending!
8. Make a list of special events for the year
This will enable you to shop sales and clearance for presents, clothing and household items.
9. Bring your own lunch / coffee
Eating out can really add up
Bring your coffee from home rather than buying one each morning.
Make your own lunch. If you love to eat out then this may be hard so the trick is factoring in some rewards. e.g. Make your lunch Monday – Thursday and treat yourself to lunch out on Friday (with a set budget of course)
10. DIY Home Maintenance
Time to dust off the lawnmower and DIY kit and start maintaining your home and garden yourself. You will save a considerable amount of money maintaining your own garden, pool and household items such as touch up paint.
Embrace Your New Normal
There’s so much to stress about so focus on the things you can control.
