savings rate
savings rate

Savings Rate: The road toward saving money practically doesn’t depend solely on getting the best priced deals you can find; at times it’s also about making the wise monetary choices and the prudent outlooks in every choice.Whenever the cash flow is unconstrained, saving money works best and is the most exhilarating part for me. So I’m going to share some sensible tips that should be able to help you open up the cash flow.

8 practical steps

  • ALWAYS ask for a discount

    ', palatino, serif; font-size: 20px;">Delay temptation by devising a waiting system
  • Stop letting food destroy your pristine budget record

    ', palatino, serif; font-size: 20px;">Cancel subscriptions
  • Maintenance is key

    ', palatino, serif; font-size: 20px;">Buy pre-loved instead of brand new
  • Think twice about everything you buy

    ', palatino, serif; font-size: 20px;">Think to cut, not increase
  1. Think to cut, not increase — While a bigger cash flow is nice, a smaller salary with a penny-wise way of spending is often just as good, else it’s better. Look at it this way; at any point that you successfully eradicate big spending or reduce outgoing costs, you will have more money leftover and will be able to use it to grow your savings. When you are more aware and clearer of your monetary needs, you’d be able to plan accordingly. One example could be working less while travelling if a job you took on could handle expenses for simple needs compared to looking for a long-term career that locks you to a desk.
  1. Think twice about everything you buy — The time you have right now and right before you retire is quite possibly the only time you have to earn a living. Post retirement, the salary won’t be coming in as regularly and you would have to rely on your savings, investment returns by then. So you should by now question your own expenses, to get value-for-money deals and other creative ways to spend less. Each penny you make is precious, so quit thinking that each dollar lost here won’t add up there in the long run. So, keep in mind that one simple journey starts with a simple step.
  1. Buy pre-loved instead of brand new — Paying a premium for brand new items is a habit you should consider culling; look toward the pre-loved store and what other people have wasted money on. Whether it is a vehicle, brand new television that didn’t fit their previous owner’s home or even home appliances, second-hand items or (delicately) used products often are an easy way to reduce outgoing costs spent in retail. We’re also accustomed to instantly get a new washing machine should the current one break. However, it doesn’t mean that the replacement actually has to be a brand-new item, it could be simply a “different” one. Why shouldn’t you look through sites like eBay, or GumTree to get a newer version of that broken-down machine?One instance is that I found a car I recently bought (new) with fifteen thousand KM on mileage for $11 000 less compared to what I paid for only half a year in advance. Of course, saying I felt dumb at the moment is a complete understatement because the mileage was way below and that eleven thousand dollars is an amount I no longer have, that could have been invested elsewhere. Now that was just a car; can you imagine how much money you could save buying used or second-hand on everything in the home? 
savings on calculating loans
  1. Maintenance is key — What we own is our pride, and by that is to invest some time in maintenance, servicing and properly caring for those things you’ve already spent money on. Should you buy a house and fail to care for it, it will fall into a state of despair. Should you get a pair of beautiful or sensible shoes, if you simply wear them without consistently cleaning it, they will rot. Applying these simple principles to your belongings will reduce the amount of waste. Imagine the amount of money you’re bound to save simply by extending the shelf-life of your items. It does not cost much except a fraction of your time and attention in cleaning, maintaining and caring for the items that you probably once saved up a long time to buy. Not only will you have these things for a longer time, it saves you money whilst engaging you with a minimalist lifestyle. Replacing things around the house is usually due to failure of tender love-and-care, so a little will go a long way.
  1. Cancel subscriptions — Billions of Aussie dollars are being channelled into magazine subscriptions, Foxtel and other access to games and apps online. It is a given that the subscriptions are the first to go when stepping up to save money. Such items that deduct an amount from your account on a regular basis (per month or annually) should be supervised. Often, we find ourselves attached to too many insignificant services we deem as a need when there is a un-constructed flow of cash, but is actually not when saving becomes a priority.There are definitely identical services you can find for cheap; Hulu for streaming services, mobile data tethering for internet needs instead of additional services. So this could be the savings rate.
  1. Stop letting food destroy your pristine budget record — Eating at home is often a topic for discussion. Though, do you realize that homemade meals are not only better for your budget, but your belly as well? Eating out at restaurants often means you can’t control the portion nor the amount of saturated, trans fats and oil you have in your food or the hygiene. Even the healthiest meal can’t promise you 100% cleanliness unless it is prepared in front of your eyes. To cull the costs of social entertainment, have some food prior to an outing, pre-drink at home before hitting the bar and try to have breakfast and lunch prepared at home on a daily basis. If this isn’t motivating you to save, use this simple formula to visualise your savings instead: Cost x days in a week x 48 weeks per year = grand total. This the the practical savings rate.
  1. Delay temptation by devising a waiting system — Implementing a waiting system by delaying at least an hour or so before you purchase anything give you time to save money instead of wasting it on the spot. By doing so, you’re going to have to wait and come back another time or simple miss the sale completely. Although, if you’re quite strict with your 60-minute rule, you might find yourself saving more than you initially thought! This is the way for your savings rate.
  1. ALWAYS ask for a discount — My friends are often embarrassed by this; either asking for a discount or bartering with the salesperson. However, they don’t realize that the staff are prone to these questions, as they come in a package-deal with their position. So, the next time you purchase a lavish item (cars, property, air-ticket, etc.)  remember the savings rate , to ask if there’s a discount. Make a reminder to do so! For those already high up in the discount game, try calling up your existing providers for better deals, lest you look to their competitors for a better deal. These could include a new mobile, WiFi, gas, electricity, and so on.

As this is the site for rich ideas of income, savings, investments, interest calculations, choosing best bank accounts, choosing personal loan, mortgage and growing your money, so please comment how you like these tips & also include any more ideas if you have, in the comment section or on the MoneyDea Facebook page.

Check our post on How to choose best bank account for you


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