SPEND RESPONSIBLY - Gaining financial control
Getting spending under control
Most people get into debt simply because they spend more than they earn. It may be possible to increase your income, but it’s usually easier to cut back your spending.
Cutting back on expensive items like holidays or expensive clothes can create savings, but it is easier to make small changes that simply become part of your lifestyle. Money spent on non-essentials, like a daily cappuccino and muffin, can really add up. Yet these are costs that can often be trimmed quite painlessly.
Ways to cut your expenses
Here are some simple ideas to trim your spending. For more tips on ways to save, click on ‘Money saving ideas’.
- Try taking your work to lunch a few days of the week. Even a modest take-away lunch can cost around $8, making it a daily habit can cost $40 each week.
- If you smoke, think about quitting, or at least cutting down. At around $12 a packet, you could save over $4,300 each year by giving up a pack-a-day habit.
- Try car-pooling. Most cars in peak hour traffic have just one occupant. By sharing the journey, you cut back on petrol as well as wear and tear on your car.
- Visit the shops less frequently. The more often we shop, the more we are likely to purchase ‘impulse’ buys.
- Shop around for the best deal. Let retailers know you are comparing prices. Many will offer you a better deal or a ‘sweetener’.
- Aim to pay in cash. It helps to keep your debt down, and can be a good negotiating tool to get a better price, especially on large ticket items.