Saving strategies

Discussion in 'Property Finance' started by Sydney_gal16, 3rd Aug, 2018.

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  1. Sydney_gal16

    Sydney_gal16 Active Member

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    Any tips on saving money? What spreadsheet do you use? Do you pay yourself a certain budget each week for entertainment and food etc? I have to tighten my spending and my current spreadsheet is not working as I’m not sticking to it.

    In light of banks “kindly” reminding you every time you spend something by receiving a notification, I’m noticing my budget for food and eating out is a lot higher than it should be.

    Any tips would be welcome as I’ve just bought another investment property and really need to reign in my spending as money will definitely be tighter now.

    Thanks
     
  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    It’s not complicated, you don’t need a budget.
    Simply don’t spend money on stuff you don’t need.

    It’s probably a goals issue.
     
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  3. KayTea

    KayTea Well-Known Member

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    Also, treat 'savings' like a bill - it's not optional, it's a compulsory payment to be made each time you get paid. It should get paid first, and is not what you put aside if you have anything left over at the end of the week/month etc.

    Put your savings into an account that is harder to touch (and earns better interest if deposits, but no withdrawals are made) - and it can't be reached by a card at an ATM/shop.
     
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  4. willair

    willair Well-Known Member Premium Member

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    Very simple-just look at the price before you swipe the card that alone starts to change the spending mindset..
     
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  5. Trainee

    Trainee Well-Known Member

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    If its because your spending without thinking, redirect part of your pay to another account and dont touch it.
     
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  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    So a new spreadsheet will fix this problem?? :confused:
     
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  7. PandS

    PandS Well-Known Member

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    no need for budget, I got my kids put aways 50% of their earning each time they got money come in whether it a casual job, chores, family givings and I told them you can go crazy on the 50% left
    enjoyed life with your friends, wasted on something you like but don't touch that 50% you put away with only a few exception.

    1. you need to purchase a house to live
    2. further your education so you can earn more
    3. Invest for future passive income stream in real estate and stock market.
    4. extreme emergency. (buying a car or pay bills or holiday is not emergency)

    They give me their saving to invest in the stock market, when they come of age that money should give them a 20% deposit for a house and that saving pattern should now becomes habits and once it becomes a habits it happens naturally.

    I don't have a budget either, I put away and I enjoyed life what is left after I put away
    with that habit you NEVER run out of money, you may not be a very rich person, but you aren't strap for cash at any point in your life either and you can enjoyed life a lot more and it is achievable for anyone
     
    Last edited: 3rd Aug, 2018
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  8. spludgey

    spludgey Well-Known Member

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    I completely agree. I used to budget and do things like that. That all went out the window, because I'm cheap and don't buy much more than the essentials most of the time, so the budget's usefulness was quite limited.
    And if you have to make a bigger purchase, just make sure you ask yourself if you actually need it and if you do whether something cheaper would be (nearly) as good.
     
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  9. ZachAnsel

    ZachAnsel Well-Known Member

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    try this proven strategy 'spend less than you earn'
     
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  10. mikey7

    mikey7 Well-Known Member

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    We don't budget.

    I have a speadsheet that tracks my monthly repayments for the PPOR loan. The spreadsheet works out how many months to go until its paid off.

    There is another column for 'extra repayments', which I have a set amount extra I have to pay into the PPOR mortgage, before I can spend money on 'wants'. Say the amount is set to $5k, I must put an additional $5k every month, in addition to the minimum payments, before I have spending money.

    This speadsheet gives us goals, because it gives us a date as to when we should fully own the PPOR, if we follow the extra payments. It makes us want to put more into 'extra repayments' because the date gets closer and closer. I've used this to encourage the wife, and we've knocked off 6 months fairly easily, just by saving that little bit extra and working towards getting that date closer.
     
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  11. Hodor

    Hodor Well-Known Member

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    As others have suggested, work out what you should be saving and auto direct debit it each period to an account you can't touch.

    It's a discipline problem by the sound of it.
     
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  12. jins13

    jins13 Well-Known Member

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    Some possible ideas:
    - Obtain and negotiate the best deals for your internet, mobile, electricity and gas.
    - Cut out anything which you don't need and stick to the bare basics.
    - Prepare your own meals (heaps of youtube videos of meals costing $3 each meal and it's not bad food)
    - Buy a playstation to minimise your entertainment expenses
    - No overseas trips until you have things under control
    - Take out 10% of your earnings and have it transferred to another account which you can't access funds. See it grow and increase in value over time.
     
  13. oneone

    oneone Well-Known Member

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    tracking where your spend goes will be informative and give you a good idea of your habits/patterns but personal budgets hardly ever work

    if i had something I def needed money for, I'll estimate how much, divide by time period required, work out how much each month that must be put aside before all other expenses.

    otherwise just work on making it a habit to question each time before you spend, do I really need it or want it, if i do can I wait for sales or buy 2nd hand, if not can I get a deal on it. Can I cook most meals except catchup with friends, invite ppl over rather then go out, can I take care of my reliable bomb car so it lives forever etc
     
  14. KinG3o0o

    KinG3o0o Well-Known Member

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    there is a saying, there is no such thing as saving only earn more money.

    Seriously tho.

    rule of saving

    no.1 Target/goal - you not gonna stay on track with out that. just set milestones and long term one.

    no.2 Budget - also set goals with budget..saying you gonna save $200 a month is kinda fruitless. save a percentage of your salary/income is gonna be way more fruitful, the more you earn the more you save..

    personally i do this. and once you work out the ratios. stick to it as long as you can.. but dont be afraid to change as circumstaces change.

    50% Expenditure (40% monthly expenses, 10% on fun thing)
    30% Invest
    10% Saving
    10% (rainy day - no matter what you dont touch this unless it is important, your money so you decide what is important)


    at the end of the day is your money and you can decide to change the % of how you want to spent or save your money..
     
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  15. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Read the book “The richest man in Babylon”. Borrow it from your local library for free.
     
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  16. LVR

    LVR Well-Known Member

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    read "The Richest Man in Babylon" - basically; put at least 10% (way more if you can manage it) into some sort of direct debit into another account every payday.
    You won't miss the money, because it is gone before you even see it.
    If you want; pretend you already have a house payment and make it that amount...for practice.
     
  17. LVR

    LVR Well-Known Member

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    SNAP! LOL
     
  18. Eric Wu

    Eric Wu Mortgage Broker Business Plus Member

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    Use Cash to pay, not card.

    And seems the desire to save is not strong enough
     
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  19. Cousinit

    Cousinit Well-Known Member

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    Doing a budget , I find , is essential . Around the end of June each year we spend a couple of hours budgeting for the year ahead.

    After I've done it I sleep a lot better . Also your bank or financier will appreciate it as it shows you have a handle on your spending .
     
  20. PandS

    PandS Well-Known Member

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    and if you don't have time to read here is the main points, I got my kids to read but they hate the
    10 BC style of writing :) so I just repeat the same thing to them over and over again, put away part of your earning, spend whatever left over after you save, NOT save what left over after you spend.

    The 5 commandments of the Richest man in Babylon

    Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
    (put away part of your saving, pay yourself first)

    Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
    (8th wonders of the world, compounding)

    Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
    (Learn from people who has mastered their arts and demonstrated proven experience)

    Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
    (Invest in the market or asset you have little knowledge)

    Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
    (Speculation, get rich quick schemes)
     
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