How to make saving money a breeze
Humans love to spend – for this reason, saving doesn’t come naturally to us. And I admit, I am no exception.
Learning to become a good saver has certainly been a journey for me. I used to overspend on new clothes, dining out and have been known to part with hundreds of dollars on after-work cocktails by gladding paying for everyone. I’ve found that I was able to change my spending habits, by simply tuning into my core values – and what’s truly important to me.
It all starts with an honest self-assessment. Identify the things that are important to you such as holidays, financial security or time with family. Consider this – where would you like to be in 5 year’s time?
A savings strategy based on your core values helps you to shift from “spender” to “saver”.
I know it’s easier said than done. I have been there. And I have failed. It took me several attempts to really tune into my core values and create a belief system. A system that I am sure will resonate with you as well. That is why I’d like to share it with you today.
The true value of health
The old saying ‘health is wealth’ makes complete sense. I try to cook from scratch as much as possible and avoid overpriced processed food. Not only is it healthier, but it also has the biggest impact on my overall savings. I love that I know exactly what I’m eating in every meal. I know it’s healthy and good for me.
Now when I eat out, I notice how over salty the food tastes and I often feel uncomfortable afterward. I still love visiting cafes, but instead of breakfast & coffee, I only have the coffee. And the experience is still as enjoyable (I still get to pat dogs and peek into prams).
Curb your vices
Cutting back on alcohol ties in with my core health values. Alcohol is a common vice for many of us and it doesn’t only affect our wallets. Speaking from experience, I often feel awful the day after I’ve had a couple of drinks. These days, when I do drink, it’s limited to one drink. I prefer to enjoy the atmosphere and to socialise, and feel great the next day.
Moderation allows me to drink without compromising my health or my work. And I love the flow-on effect on my savings.
Make eco-friendly choices
Making small eco-friendly choices not only benefits your pocket, but also the environment. And it doesn’t even have to be a major purchase such as solar panels or water tanks. Swapping to chemical-free cleaning products such as vinegar, baking soda, and lemon juice will go a long way and will clean just about anything. Making your own cleaning products is quick and easy, saves a tonne of space and money, and is better for your health and the environment.
Time to declutter
Adopting a minimalist lifestyle has certainly turned my life around. It feels amazing to be lighter in possessions, and by clearing my space, I simultaneously feel like I’ve cleared my mind too. Living clutter-free helps me stay organised and less distracted.
Plus, I get to help the less fortunate by regularly donating my belongings.
Avoid money traps
Adopting a savings mindset, means evaluating your spending weaknesses. In my case, shopping centres were my downfall. I often bought unnecessary items and no matter how hard I tried, I could never stick to my shopping list.
So, I decided to avoid shopping centres for a while and opted to seek out local retail just when I knew what I needed. By reducing the time spent at shopping centres, I could now take advantage of parks, river walks, and fresh air. The choice to stop going to shopping centres as a way to relax has been a big realisation and has saved me plenty (of money & clutter!)
Invest in experiences, not items
Knowing my values helps me live a life filled with rich experiences. I prefer to take a short holiday instead of splurging regularly on eating out or clothes. I prefer to be financially free rather than updating my furniture every few years. And I’d rather see my Super nest egg grow each year than buying lunches every day.
I’m sure your values may be slightly different from mine, which is great because everyone’s different. What matters is knowing what’s important to you. Take time to assess your why. You may just be surprised by the answers. Then use this knowledge to create a new savings strategy that helps you to make better spending decisions in the future. This is the only way to truly make saving money completely effortless.
This article was written by Tamara Gillman, a Certified Financial Planner who loves helping people achieve financial independence. Tamara is the Director of True Journey Financial Planning and provides advice on personal insurance, superannuation, budgeting and wealth creation.
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice for your situation, prior to acting on this information.