How To Crash Course Your Savings
Summers coming up quick for everyone in New Zealand, and that means the silly (and often expensive) season is well and truly in sight.
Whether it’s summer vacation you’re saving for, a trip overseas or the upcoming christmas period which always manages to blow the budget, there can be multiple reasons why you may need a cash surplus. Events happen (expected and unexpected) which is why these simple tips will help you prepare and manage your savings come summer.
First things first: Set yourself a budget.
Get familiar with your weekly income and where it goes. For instance, how much you earn, how much you save and finally how much you spend.
Bite the bullet and set yourself a financial goal relevant to your particular situation. Jump onto my resources page where you will find a spending template which is a useful tool to help with figuring out exactly where your money is going.
Next step: Does your amount saved add up to your savings goal?
Do you need $3,000 to cover the family’s christmas presents, your annual camping trip and holiday care for six weeks while school holidays are happening? Don’t forget the flight expenses to see your extended family in the North Island.
Are you saving $5,000 so you can quit your 9 to 5 job in the new year and start your freelancing dream?
Are you wanting to travel the next European summer and need $10,000 to last you throughout that time?
Take your goal and break it down into a weekly savings goal, then write it down and hold yourself accountable. Watching your savings grow is addictive, the hardest part is just getting started!
Now you’ve set your goal, let’s figure out how we can squeeze a little more money into your back pocket.
Get a Side Hustle. There’s 168 hours each week, and with most of us only working 40 of those, we do have capacity to work a few more hours. If it’s picking up extra shifts in your current role, doing some cash work on the weekends, or even look for remote jobs in your chosen field — Check out We Work Remotely for heaps of interesting remote work!
Watch your weekends — You can be doing so well Monday through to Friday, no brought lunches and coffees but then Friday rolls around and your long lunch turns into afterwork drinks and before you know it its Fraturday (Friday turned into Saturday blow out).
If you are really wanting to get serious about saving, get a side hustle on your weekend — Killing the two above tactics with one stone.
Chop up your cards — If you’ve got a credit card that isn’t getting paid off in full each month then now is the time to get rid of it. Spending money on interest payments each month is money you are throwing away. For more information on how to get rid of short term debt, take a look at here.
Move back home — If you know you are moving to London in July next year then I’m sure it’s not going to kill you to move back home. If that’s not possible, you could also look into room sharing with a friend. Rent commonly makes up a large portion of your expenses.
Memberships — Take a look at your statement and see what payments are going out on the regular each month. Is there anything you can ditch? How about your gym membership for the next six months, and opt for the park as the weather warms up or sharing a Netflix and Spotify account — These small savings all add up!
Put a hold on buying “things” — Clothes, coffees, shoes, lunches and takeaways. Find your biggest expense, then give it up for thirty days. These luxury items can all be put on hold for the short term. If you’re embarrassed that you won’t have the latest iPhone or designer clothing, talk to your friends, family and colleagues and make them aware of your savings goals. I am sure they will be 100% behind you!
Check in monthly — Seeing your progress is key, and watching your bank account grow can get addictive. I’d recommend using a Net Worth Calculator (link here) each month to do a quick check that your assets are increasing and your liabilities are decreasing.
If you are serious about your savings goal then all of these changes will be a big help. Just remember all the small things do add up and the feeling that you will get from obtaining your financial is greater than any pleasure you will get from brought coffee
Be kind to yourself and get on top of your financial situation. Making some short term sacrifices will accelerate your savings and make you way more motivated to keep going. Starting is the hardest part.