Are you someone who finds the world of finance as baffling as a political debate? Does your cash feel like it vanishes faster than a magician's rabbit? Fear not, here are ten simple (and not so simple) tips we found to help you save money and spend less, even if you don't have a lot to start with.
- The Envelope System
This old-school method is simple yet effective. Allocate cash for different spending categories into envelopes (e.g., groceries, entertainment, transport). Once the money in an envelope is gone, you're done spending in that category until the next budget cycle. This physical limit can help curb impulsive spending.
- Automate Your Savings
If you're not good with money, let technology do the heavy lifting. Set up automatic transfers to a savings account right after your paycheck hits. Out of sight, out of mind - and before you know it, you'll have a nest egg.
- The 52-Week Money Challenge
Start by saving $1 in the first week, $2 in the second, and so on. By the end of the year, you'll have saved over $1,378. It's a gradual increase that might not pinch too hard, especially if you start with small amounts.
- Cook at Home More
Eating out or buying takeout can drain your wallet. Cooking at home not only saves money but also lets you control what goes into your meals. Batch cooking (like a massive baked lasagne) on weekends can make this even more efficient, and you can get two meals instead of one in the same amount of time.
- DIY Everything
From haircuts to home repairs, if you can do it yourself, do it. YouTube is your friend here. Learning new skills not only saves money but can also be surprisingly empowering.
- Use Cashback and Rewards
Credit cards can be scary, but if you pay them off monthly, they can be your ally. Look for cards that offer cashback or rewards on everyday spending categories. Just remember, discipline is key. If you’re not disciplined, miss this one!
- Thrift Shopping and Second-Hand Finds
Why buy new when pre-loved can be just as good? Thrift stores, garage sales, and online marketplaces like Trademe aren't just trendy right now; they can be treasure troves for everything from clothes to furniture.
- Cancel Unused Subscriptions
Seriously, how did all those add up so quickly? Audit your monthly subscriptions. Are you really watching that streaming service or using that gym membership? Cancel what you don't use. There's no point in paying for potential.
- The No-Spend Challenge
Oh gaud... we said it, but yeah.. pick a day, a week, or even a month where you spend as little as possible. This challenge can highlight unnecessary spending habits and encourage more mindful consumption. Yeah, I know, this one is a little out there, but apparently, it works!
- Learn to Say No
We all need to do this more! Peer pressure can lead to spending beyond your means. Whether it's a night out or buying rounds, learning to say no or suggesting cheaper alternatives can save you significant amounts.
Bonus Tip: Financial Education
Lastly, invest a little time in learning about money. The truth is that we don't really learn how to be good with money at school, not even at uni! But, there are countless free resources online (like https://sorted.org.nz/), from podcasts to blogs, that can teach you about budgeting, investing, and saving. Knowledge is power, especially when it comes to your wallet.
Remember, saving isn't about 'going without' - it's about making smarter choices. Start small, celebrate your victories, and gradually build a habit of financial mindfulness. Even if you're not earning a lot, these strategies can help you build a buffer against life's unexpected expenses. Here's to your financial journey!
