If you feel every month you are over spending or you have not put anything away in savings then this blog post may help you out. First of all I am no money genius and in fact I know I’m to tight on myself with savings and money. I do feel like I know a few good steps for anyone who struggles to manage their money. Its not really anything ground breaking but it worked for me.
1.Look at Your Spending
You can either do it the good old fashioned way with pen and paper or create a spread sheet in Excel. Write all your monthly outgoings first; rent, food, gym membership, petrol etc. Include everything, go through the month and make sure even the small outgoings are captured (that morning coffee….etc). After everything is written down you can see how much of your pay has to go on your outgoings and how much you have left for the month.
Next step is to decide how much you put away into savings from what is left after your outgoings. This is obviously completely personal choice, just don’t do what I do and skint yourself because I end up putting to much money away. I always transfer the amount I wish to save into my savings account as soon as I get paid. Once you have done this for a few months you wont miss that amount of money at all and it will build up for a rainy day.
3. Pocket Money
Pocket Money is what I call the money left over for my social life. If you want to increase the amount of pocket money then you can put less away for savings or decrease your outgoings. Getting a rough idea on what you spend socially Vs what your outgoings are is a really good way to make sure you are making good choices when it comes to money. I was shocked at how much money I spend on food socially.
4. Cut Backs
If you want to make changes to your out goings you need to look at what can be adjusted. Usually rent in Sydney if anything just goes up so that can not be reduced.
Food shops can be reduced if you like. I find planing my meals for the week, writing a list, shopping at Aldi and shopping on a full tummy always results in a cost effective shop. Otherwise I buy snacks I don’t need cos I am hungry, over buy products as I don’t know what I need for the week and spend more if I enter Woolworth’s.
Gym memberships can also be reduced by shopping around and finding the best deal. I stopped my membership and I am lucky enough to have a gym at work and I run outside for the rest of my work outs. Also look at how much you use the gym membership maybe paying to use a gym casual would actually be more beneficial.
Petrol can be reduced by just making the effort to fill up at the cheapest petrol stations. Around us in the Inner West it is the Speed Way. Have a look at the local petrol stations around your neighborhood to see which is cheapest.
Social life spends can be reduced by taking a look at Groupon or Scoupon see what deals you can pick up. Make sure you sign up to local cinemas and websites which often have offers on. Arrange to meet your mates for a meal deal in the city or happy hour drinks. You can also check out this page which has lots of things to do in Sydney on a budget.
Please remember this is if you would like to be putting more money away and handling your money better and is purely just my view. I know there are many different ways to save and the ones above have worked for me so maybe they will suit you. Being in control of your money and feeling secure is also part of mindfulness life. By knowing you have enough money and where your cash is going it reduces stress and anxiety in your life. Let me know how you get on if you try any / all of the tips above.