Ways to save money

[Mooze]

Simon started a great thread years ago.
http://somersoft.com/forums/showthread.php?t=24892&page=7

It has some great advise.

I have never been a good saver, but once I started tracking what I was spending it certainly helped. I still send too much but I'm not going to become tight for the sake of it.
I run my accounts like a business. Focus on earning more while controlling cost. Spend money to make money.
N my opinion it's easier to make an extra $1000/ month than to cut costs by $1000 provided your costs are under control.
Saving a couple of hundred dollars a year by chasing around to save 3c/l on fuel just doesn't make since to me. Go and get a job at a fuel station and pump fuel for an hour a week. You will do better (an extreme example not to be taken literally - it's a conceptual point for the pendantic ones amongst us).

Control cost - focus on revenue.

Blacky

Depends on fuel tank size and voucher size - our car has two 80 litre tanks - often the grocery stores will offer up to 40 or 50c off max 150 litres - I'll happily have $60 or $80 off my fuel bill thanks (and that's only when we need to fill up).

Other one is work the credit cards - I do a check every so often (takes about half an hour once every three months) to make sure we're getting the most from our credit cards in every possible way - end up with around $2k in vouchers each year for coles or other stores.

 

[weg]

If you're already a reasonably good money manager and cutting further isn't cutting it, then work on earning more and saving the extra.

Try for a better paying job, or a scholarship (almost anyone can qualify for some of these) and study part time to be able to achieve a better income, or supplement your income with a small business (easy to start a small p/t business that requires little effort but earns you a few extra K per year).

You can also rent out a room, increase rents (if they've been too low), do a small reno for increased rent, etc.

You can often earn more without increasing your hours too much, if at all.

The more you can earn the more you can save.

 

[Olly]

Saving your change can be a good saver without any noticeable difference to your spending. However, it gets heavy to transport when you want to cash up and annoying to convert to notes. Most peoples change thrown in a bowl would amount to close to $5. I just save my $5 notes. It becomes 100's in no time.

I know there's lots of reward cards, but used wisely some can be really good. My everyday rewards (Woolworths) card gives me 20c a litre off fuel every 4-6 weeks for spending around $120 over a particular 3 day weekend. Not a lot to spend on food although as a single person more than I normally would, so I use these 'big shops' to top up on things that store well like washing powder, dish washing liquid, canned foods, toilet paper and tissues etc. I fill up on the cheap petrol days and top up in between using the usual 4c - 8c savings. Not to mention getting the in store discounts and points towards Frequent Flyers. Not a plug for Woolies, but I do find the savings quite good if used properly.

Occasionally Coles does a big petrol discount and I may shop there when that's on. Their discount is on their dockets.

 

[Colin Rice]

People ask me whats the "secret" to getting ahead financially. I tell em point blank (in a nice way ) money in v money out and money in needs to beat money out and then invest the difference, watch it grow and then reinvest.
I used to ask myself this question, Do I really need what I am about to buy? The answer 9/10 would be NO! I obeyed it and applied the principle stated above.
Some have answered "I do that and still cant get ahead". My answer is to make/create more income and apply the principle above.

 

[BayView]

It's been mentioned before by me and probably others....the "Latte Factor" is a terrific eye opener about various ways to save money.

Some will no doubt respond with "I'm gunna have my double soy late no matter what and I don't care"...or "life's too short to be cheap and cheat yourself out of a good coffee, etc"....or words to that effect.

That's fine - keep doing what you do, and let the folk who need to get a plan to get ahead real quick follow the tips provided here to save money.

Being glib about a Late Factor strategy is great if you are earning well into the 6 figures....anyone else who isn't hasn't got that head start, and needs all the secrets - even if they seem tight to some.

 

[Darlogus]

I'll like to start a thread to get some suggestions on ways to save money for things you need or want e.g. cash for a IP reno, deposit for PPOR, pay for a holiday, etc without resorting to loans, credit cards or having to get a 2nd or 3rd job.

Here is what I've come up with so far ...

1. Have a garage sale and get rid of junk or ebay it.
2. Look at your mobile phone plan and switch to a cheaper plan.
3. Are you using your gym membership? Cancel it and start running outdoors - it's free (I did!)
4. Buy no-name products from supermarket.
5. Purchase ebooks instead of real books
6. Switch to online digital magazines instead of real magazines.
7. Eat at home more often instead of eating out.
8. Have a 'no buying anything new' for a month or two e.g. clothes, toys, etc.
9. Grow your own fruit and veggies.
10. Wash your clothes in cold water to save on your power bill.

Any more ideas?!

My tip to saving seems straightforward but much tougher to do for most.

Your car or cars.
I have a good friend who has been talking about buying an investment property for a couple of years but just can't afford it...... Problem is that even with no children and just the 2 of them, they own (loans) 2 fairly new cars, one being a BMW. Which they purchased (mortgaged) this year cos it was a great price.... I remind him often that the car cost more than an investment property, blah blah blah. That the car will drop in value and the IP will increase substantially over time blah blah blah, you all know what I mean.


On the other hand we have 8 properties and 4 children with 2 cars total value $8k with no loans. Cars are in good condition and very reliable, and not rust buckets, and early 2000 models. Every time we think of getting a newer car, I sleep on it and go and buy another property instead.
btw I.have always been in the RACQ but never called them, but good piece of mind, especially for my wife.

BENEFITS
Much lower insurance premiums
No car repayments
No high service charges (only repaired when needed) tyres, brakes every few years.
Smaller engines so,
Cheaper fuel economy
Cheaper rego

Not for everyone but worth pondering over.

 

[kathryn d]

save your change. I dont ever spend any coins, save them all. 6 months worth is spending money for my family of 5 in bali....

I'm the opposite.
I empty my change into a container every night, and then every morning I take a handful.
Whenever possible, I use the coins first, and try not to cash a bill.
It seems, once cashed...it's gone.

 

[Simon]

I'm in a different phase of my life now. I hardly buy anything anymore. Unless it is to eat or drink or to fix my boat or travel.

I spend half the year in just shorts and wear them till they fall apart. My t shirts are cheap. I even dug up an old bush jacket I was issued in the army in the 80s when it was cold earlier this year. Apparently it is very cool and low quality copies command high prices..... Friends give me clothes sometimes. Not because I need charity but because they now i'll happily wear them and they feel better about paying $50 or $100 for a shirt then sending it off to the poor while it is still in new condition. That stuff just isn't important to me.

My car is old and worth about $3k. Happily drive it to Perth tomorrow. Very happily lend it out when I am OS and I don't have to be precious about how it is looked after. I'd swap to a bike if I didn't have family who rely on me to drive them places.

I have been getting rid of stuff I haven't used in ages. My house looks better than it has for years, more spacious and less cluttered with boxes of books etc.

I love books and records etc but now it is all electronic. Takes up much less space and suits my nomadic lifestyle. Very cheap too. But I will still buy second hand books at markets etc. have been doing so since I was 6 and read Biggles and Just William..... Is part of who I am. But I miss being able to lend people books just because they looked at the, on my shelf. Did I say lend! They never seem to come back again, but that is part of the magic of real books.

I have every Pulitzer Prize winner on my kindle right now and I read them when at sea. I couldn't do that with real books.....

I don't hold myself out as a model for saving money, I guess what I am trying to say is that this whole consumption thing is a mindset. Like losing weight or giving up smoking. Spending really is a habit, short term pleasure etc.

Talking about this stuff in here does seem like preaching to the choir.

I hate going to malls. I feel like I am being manipulated into making choices I don't choose to make.

I try to buy my groceries down on the Main Street at the butchers and green grocers etc. it may cost more but I walk down every few days and just get what I need. I find I don't throw stuff out as much and also don't hoard a pantry full of cans etc. I love to cook for friends. Made a hainanese chicken stock the other day, impressed people and cost way less than shouting at a restaurant. Was fun too. My favourite way to entertain is to cook for people while they hang out in my kitchen and ply me with music and wine.

I'm not stingy with friends or family, it is mostly myself that I choose not to impress by spending. That makes sense in my head

I just hope I get through to my daughters. I really want them to be financially self sufficient young women. So far so good, every time my youngest buys something she divides the price by ten then calculates the value in "working at McDonalds hours". Doesn't stop her from making different choices than I would but then she is a 17 yo young woman

My eldest is into the whole vintage thing. She buys amazing dresses online but she is canny enough to then sell them again on eBay, often for a profit. She models at the vintage fairs and tattoo expos etc and then it all becomes business expenses. Smarter than I was at that age. Way better looking too....

So for rambling. I just wanted to make a small point then got carried away.

 

[Simon]

Enjoying this blog lately. Fits with my entertaining style

http://foodisthebestshitever.wordpress.com/

Sorry about the rude word Sim but it is essential to the URL .....

 

[Angel]

Do not be a school teacher.

That way you can take your holidays during school term for half the price they cost in the school holidays.

 

[geoffw]

Throw away your kids. You'll save heaps that way. They will probably cost more than your ppor.

When you get rid of them you can also rip out the back seats in the car. That extra weight removed will save you in petrol, and will increase the carrying capacity for reno materials.

Wait until the youngest kids have turned 18 before divorcing. Even after you've thrown them out, you may still have to pay child support otherwise.

 

[BMan]

I'll like to start a thread to get some suggestions on ways to save money for things you need or want e.g. cash for a IP reno, deposit for PPOR, pay for a holiday, etc without resorting to loans, credit cards or having to get a 2nd or 3rd job.

Here is what I've come up with so far ...

1. Have a garage sale and get rid of junk or ebay it.
even better post on local buy swap sells groups on facebook. dont have to pay ebay a commission and if its not crap alot gets sold pretty quick
2. Look at your mobile phone plan and switch to a cheaper plan.
switch to a plan that suits you, not a cheaper plan. if you go over on your data or calls/txt you end up paying way more.
optus have a new scheme where it upgrades you to the next level plan if you go over rather than paying outrageous amounts for going over. aldi or boost are your best prepaid telstra unlimited plans with reasonable data
also telstras prepaid encore cap gives you a cap plan where the amount you recharge with is available to go towards data/txt/international call packs
4. Buy no-name products from supermarket.
already do doesnt taste any different for most things does it
5. Purchase ebooks instead of real books
6. Switch to online digital magazines instead of real magazines.
or get a hobby that you can tinker with things (that you enjoy) and sell them for proffit
7. Eat at home more often instead of eating out.
defiantly a big saver here i still need to control this a bit
8. Have a 'no buying anything new' for a month or two e.g. clothes, toys, etc.
9. Grow your own fruit and veggies.
10. Wash your clothes in cold water to save on your power bill.
doesnt everyone do this already?
also on this dont use ur dryer hang clothes infront of your fire or undercover or pick your days carefully in winter
Any more ideas?!

expanding/my opinions/what i do

I'm the opposite.
I empty my change into a container every night, and then every morning I take a handful.
Whenever possible, I use the coins first, and try not to cash a bill.
It seems, once cashed...it's gone.

im a little different again i normally recycle my coins by going to the pokies change machine, change over a weeks/months coins to $1 coins then going to the cashier and getting them changed into notes

 

[willair]

Wait until the youngest kids have turned 18 before divorcing. .

That does not always work,, a few mates on the 4-5th time around find out six months down the track that once the new Lady moves in so does all the kids from the last in line,the grass always look greener on the other side till you get there,,..

 

[rowena]

check out freecycle or buy swap and sell sites on facebook. - ive picked up my bubs cots for $35 and $50 (one for grandma's place but did buy brand new mattresses), a change table for $5, a pram for $50 and so on.
I picked up a computer desk and a outdoor wood table setting for free yesterday thanks to curbside freebie!
check out garage sales too.. people tend not to want to cart stuff when they move house!

The other option is move to a cheaper area where cost of living goes down. works even better if you are one of the lucky few who can do a work transfer!

A lot of people turn their nose up at buying secondhand! I'm being very skimpy on what i buy atm, so as i can basically throw as much $'s straight onto the PPOR. This way when my bub is older I should have ppor repayments gone and i can spend this on things like holidays or more IP's. (no use saving every dollar when you get no enjoyment! you can't spend it when your dead!)

oh also look around for specials or seconds! Bunnings and paint!
Picked up a 4L of mistint blue for $25, picked up 15L of british paints white paint - which bunnings tinted for me for $89 because BP had gone to a newer branding. Sometimes you just need to look around!


online shopping is great for bargains too but make sure you include shipping costs because sometimes buying locally can be better!

 

[D.T.]

My car is old and worth about $3k. Happily drive it to Perth tomorrow.

I'll put the kettle on then shall i? Must be about your turn, i drove to your place last time.

 

[kathryn d]

check out freecycle or buy swap and sell sites on facebook. - ive picked up my bubs cots for $35 and $50 (one for grandma's place but did buy brand new mattresses), a change table for $5, a pram for $50 and so on.
I picked up a computer desk and a outdoor wood table setting for free yesterday thanks to curbside freebie!
check out garage sales too.. people tend not to want to cart stuff when they move house!

The other option is move to a cheaper area where cost of living goes down. works even better if you are one of the lucky few who can do a work transfer!

A lot of people turn their nose up at buying secondhand! I'm being very skimpy on what i buy atm, so as i can basically throw as much $'s straight onto the PPOR.

Yes, us too.
We have 12 units that are furnished, (about 6 yrs old) and the microwaves are starting to wear out. This week we picked up 3 microwaves at the second hand store for a total of $11. Just needed to take them home and give them a quick go over. Now we have 2 spares.

 

[AlmostBob]

Save money: eat roaming children

 

[Scott No Mates]

Lots of little gems here in no particular order:

Ditch the car & train. I take ride my bike when ever possible.

Carpool with work colleagues

Bike = no more gym. A bit more washing though (at least I get a warm shower at work and the pool near home - both free). Wash my cycling gear in the shower & dry in the locker (another saving).

Fruit/Biscuits & tea/coffee/milk in the work tearoom is free - morning/afternoon tea taken care of.

Don't laugh at dumpster diving - alot of good food goes to waste.

Ignore best before dates - yoghurt/cheese doesn't go off unless it is green. Mushrooms don't go green.

Limp veges still work in a stir fry.

Turn your fridge temp up to minimum. Take your fridge light out to save power.

Take your thermos to work & heat up dinner in the microwave (take it home hot).

Volunteer at the local homeless shelter - you get free meals.

Buy clothes, appliances, furniture etc from your local OP shop.

Use leftovers for lunches.

Give up softdrinks and bottled water

Pay your mortgages fortnightly if P&I (or convert to IO)

Move into a squat (or one of your own IP's owned in trust)

Rent out your spare rooms to overseas students

Visit your relo's frequently for meals.

There is plenty of free food by the roadside - look for fresh roadkill, nettles & other roadside plants make a great stir fry vege or spinach substitute.

Listen to the traffic accident reports. If a truck has had an accident with a load of fruit/vege/chicken etc rush out to get your share.

You can often find fruit hanging over people's fences if you go out walking

Catch sparrows/pigeons etc in your backyard (great source of protein).

Look out for the people giving away free food samples at your local shopping centre

Make free phone calls either from work or use 1800-reverse

Get on first name basis with the moths in your wallet/purse

If going out on a date, go dutch.

Go to the movies on their discount day (smuggle in your own popcorn & water)

Get free internet from wifi hotspots

Visit your local hospital emergency centre rather than your GP as the hospital takes medicare

Put a seat in the local shopping centre toilets and hand patrons a towel (have a tip bucket handy)

Try busking/washing car windscreens

Raid the council clean ups for usable furniture etc, pick up scrap metal & sell at the junk yard

Travel light with a sleeping bag/tent only - go to lots of open homes and squat in those which are vacant (providing you are out before the agent gets back)

Use a hot water bottle rather than the electric blanket

 

[Olly]

My SonIL is a hopeless saver but was going to have a go. His cashie job is normally spent on rubbish - nothing to show for it. He was going to try to save all of it or at least half every week if it got too tough to save all. I set him a challenge. Every time it reached $100 - change it to a $100 note. He asked why but I didn't say - just said do it. Reason being a $100 note is harder to break than other notes. He did it and found that he didn't want to break them and enjoyed seeing them pile up. A few weeks later he said, "I've got $2000 - I can't believe it. I've never saved in my life. And it didn't hurt and I didn't go without anything blah blah blah." He's not completely won over just yet, but at least he's had a taste of the satisfaction of doing it, seeing it grow and realising it doesn't take that long and doesn't hurt.

Not completely won over yet meant he looked at me aghast when I said "and now you throw that money on your credit card(s), loans, mortgage." He thought he deserved a reward for saving and bought a $700 golf club! Yikes!

Small steps................sigh.........

 

[Simon]

When I was young I was a crap saver but good at commitments.

So I started by borrowing money for small share purchases. Say $10k in today's money. Then try to pay it down over 6 months and repeat.

In the days before Internet it was easier not to bother selling the shares. Whilst liquid it was a bigger mental step than using savings to buy a new stereo etc

Tax effective too. Much like buying an IP for a much lower entry price.

I got in on some great floats too.