Savings strategies

Thankyou jingo,

i have to do some digging for threads that elaborate on "paying yourself first and see some examples because i like the sound of it!

Thanks again
 
We currently save a decent amount of money by setting up a saving 'direct debit' out of our main account every payday. You don't even realise the money has been taken out.
We also set savings goals to manage our progress.
Every time we get a payrise, we don't increase our standard of living, we simply save whatever the payrise is.
Holidays etc only happen if we do enough overtime to pay for them. (limit the total cost of the holiday to 5k)
Finally, we don't deal in cash. If i have $50 in my wallet, it just goes! Everything is on credit, we have a low credit limit, and its paid every month. The added bonus being, we also get frequent flyer points which is a little something for nothing! Also, a lot of places don't take credit card, because of that impulse buys are almost eliminated. It also allows us to see where every cent goes.

Having said this, when we finished our studies and got decent paying jobs, we did go a little crazy on new cars......if i could go back in time i would stick with the older, cheaper option! Oh well, in under 4 years they'll be paid off!

When i was younger, my uncle told me something that has truly stuck with me
'its not about how much you earn, its about how much you save'.
 
big_head said:
Having said this, when we finished our studies and got decent paying jobs, we did go a little crazy on new cars......if i could go back in time i would stick with the older, cheaper option! Oh well, in under 4 years they'll be paid off!
Click to expand...

Nothing wrong with treating yourself from time to time :D

AS far as saving goes it's all about finding what works for you...I can't even count the number of fights over money my partner and I used to have until we 'worked it out' - it's hard to be in a relationship with a spender (him) while you're a saver (me :) )
 
Similar to my relationship Porp-e. Except my partner doesn't spend TOO much.

I feel sorry for her sometimes. I have extreme fiscal discipline. She does a good job but still believes in occasional small purchases.

Through heated discussions we agree to compromise. But I do understand I am unreasonable at times.

Our basic savings strategy is with a everyday account and savings account. The everyday account has a float of around $2k and all bills, mortgage etc. Direct debit out of that account. Pay goes into that account and on payday anything over the 2k is transferred into the savings account. Any savings after a reasonable accumulation is directed to PPoR debt reduction/investment portfolio.

Splurging comes out of the everyday account. It is very easy to keep track of what is taken out then, as the previous balance is known. The system works well, saving around 50k a year on 90k combined pay-g. It's a start, and is definitely getting the ball rolling.

(Just to stick it to any Gen-Y bashers, my partner and I are both 20.:p)
 
CJproperty, thats really good! Is that 90k combined net or gross?? How to people here manage to save 70% of their income? are those figures Pre tax, or post tax? We currently save/invest just over 50% of our net pays...
BH
 
thats 90k gross, so roughly 78k odd net.

Self imposed austerity: Learn to be a great cook, digital tv, library, lots of exercise.

I get a ribbing from my colleagues about how little we spend. But when you look at it, you kind of have to wonder how much you really need to spend when trying to get somewhere.

It also helps that we're young, so doing some hard yards now to make leaps forward seems logical.
 
CJProperty said:
thats 90k gross, so roughly 78k odd net.

Self imposed austerity: Learn to be a great cook, digital tv, library, lots of exercise.

I get a ribbing from my colleagues about how little we spend. But when you look at it, you kind of have to wonder how much you really need to spend when trying to get somewhere.

It also helps that we're young, so doing some hard yards now to make leaps forward seems logical.
Click to expand...

I am seriously impressed & have a looong way to go. I firmly believe that it's not what you earn but what you spend that makes a difference. And yet with only 2 adults (& 2 dogs!) my version of strict budgeting = 60% more in living expenses than that.:eek:
 
big_head said:
How to people here manage to save 70% of their income?
Click to expand...

* Eat out less and get acquainted with rice or source cheap but quality foods

* Have a very low maintenance productive garden for certain herbs/vegetable/produce. Obviously can't grow everything so still have to buy meats & other consumables but manage to save a few thousand a year.

* Shop around for the cheapest utilities like phone/internet/electricity etc.

* Stay occupied with work/education & cheap or productive hobbies (mine are mountain biking/gardening/small renos/going to auctions etc) and you won't find yourself spending money going out all the time.

* There's also plenty of free entertainment on the internet as well, just need to know where to look. :)

* Share costs whenever I can with friends\relatives etc.
 
Ms Jade said:
I am seriously impressed & have a looong way to go. I firmly believe that it's not what you earn but what you spend that makes a difference. And yet with only 2 adults (& 2 dogs!) my version of strict budgeting = 60% more in living expenses than that.:eek:
Click to expand...


I tend to disagree with this.
You can only save so much.
We don't have many living and lifestyle expenses, although we have a young child.
Probably spend 5% of income currently.

Sure budgeting and spending wisely, cutting back on unnecessary things count, but no need to go to extreme levels if your income is low.
It's much easier to work on increasing income.
 
instead of just saving we chose to increase income...

changed jobs with higher income.
also started a home based network marketing business and sell products from home.
also spend spare time in creating online informational products which will soon create some income..:)
 
pdawg said:
Obviously can't grow everything so still have to buy meats & other consumables but manage to save a few thousand a year.
Click to expand...

Actually, now that you mention it - one of the guys at work here was driving home one night, when the car infront of him hit a deer (of all things! :eek:)

I asked him if he threw the carcass in the car and took it home - he said the lady driver of the car that hit it was a bit unsettled (let's face it - front of her car was wiped out, and the deer was still kicking about) so he thought it might be a bit much if he asked her to help him load it into his boot :D

Anyway, he drives past the area the next morning - lo and behold, only a pile of guts and innards left where the carcass was!



pdawg said:
* Stay occupied with work/education & cheap or productive hobbies (mine are mountain biking/gardening/small renos/going to auctions etc) and you won't find yourself spending money going out all the time.
Click to expand...

Yep, can't argue with property investing as a hobby - no time to watch tv either! (so you don't need one :D)

pdawg said:
* Share costs whenever I can with friends\relatives etc.
Click to expand...

I thought the name of the game was "get them to pay all costs".....:eek::D

The Y-man
 
All this talk of saving and not spending is upsetting the economy. I request it stop at once :p

All these interest rate rises are really turning me into a tight *** tony. Doesn't help im buying more low yield investments either

Regards,

RH
 
The Y-man said:
Actually, now that you mention it - one of the guys at work here was driving home one night, when the car infront of him hit a deer (of all things! :eek:)

I asked him if he threw the carcass in the car and took it home - he said the lady driver of the car that hit it was a bit unsettled (let's face it - front of her car was wiped out, and the deer was still kicking about) so he thought it might be a bit much if he asked her to help him load it into his boot :D

Anyway, he drives past the area the next morning - lo and behold, only a pile of guts and innards left where the carcass was!

The Y-man
Click to expand...
I hit a young deer in Scotland last year while visiting the in-laws. Damage wasn't too bad but the deer was history. I wanted to throw it in the boot but my wife told me its regarded as poaching and is illegal. The car behind me stopped and grabbed it though is that however is perfectly legal. :rolleyes:
 
K_Raheja said:
instead of just saving we chose to increase income...

changed jobs with higher income.
also started a home based network marketing business and sell products from home.
also spend spare time in creating online informational products which will soon create some income..:)
Click to expand...

gotta agree with that, limit to how much you can save (100% of income) no limit to what u can earn.

also a lot more fun than saving
 
K_Raheja said:
also started a home based network marketing business and sell products from home.
also spend spare time in creating online informational products which will soon create some income..:)
Click to expand...

How are these two ideas working out for you mate?

Cheers,
 
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