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Budgeting

11 Everyday Tips to Help You Save Money

Sometimes finding more ways to save money can seem too hard, especially with the rising cost of living, it seems like everything is going up!

You research tips and think to yourself how is saving $12 a month on bank fees or a few dollars on a coffee really going to have any impact on my savings? How will that help me get on top of my debt or save for a holiday?

It may all seems like too much effort with limited results, but it is important to stay focused on the bigger picture.

Savings can be found anywhere you spend your money.

In order to find savings, you need to look at where you currently spend your money and get creative about ways to reduce that expenditure.

It could be as simple as a phone call to ask for a better deal, or taking ten minutes to research something a little bit more before hitting the buy button.

Becoming complacent about spending can end up costing you more than you may realise. And with most expenses being something you fork out for each year, saving more money sooner than later really pays off!

Here are 11 Everyday Tips to Help You Save Money. Each one alone may only give you a small increase in your savings, but together they can make a big difference over the space of a year, and the less money that comes out of your pocket day to day – the better for your savings goals!

11 Everyday Tips to Help You Save Money

1. Review insurance annually

Shop around for all insurance bills annually. Insurance can increase significantly year to year and most companies will take advantage of loyal customers who don’t put the time in to compare what they are being charged.

Most insurance companies offer quick online quotes and allow you to adjust the market value and excess coverage in order to get a true comparison and potentially save on your premium. Within minutes you can have a few price comparisons for the insurance you are renewing and be well on your way to saving money. I’ve often saved hundreds of dollars each year reviewing my insurance before renewing it.

Do your best to review these insurance prices every year to save:

  • Car insurance
  • Greenslip (medical vehicle insurance)
  • Home and Contents Insurance
  • Health Insurance
  • Death and Permanent Disability Insurance
  • Income Protection Insurance
  • Mobile Insurance

Another option, once you have some online quotes for reference is to call your insurance provider to ask if they can make you a better deal on your insurance premium.  

Whilst you are there, consider if you even need the insurance you are paying.

Insurance is highly recommended when it comes to things that can ‘change your life’ such as home insurance or health insurance. If you own a car that is only worth $1,000, you might save some money on insurance premiums by buying Third Party Fire and Theft insurance cover, rather than comprehensive insurance (so you are covered if you hit someone or something, but you aren’t paying to cover your car if it gets totaled).

If you are paying for insurance premiums like mobile insurance or extended warranties, you might be able to just cancel those as they aren’t going to “change your life” if they break. You are probably better off just setting some money in a savings account in the event that you need to replace those items.

2. Only shop when you have something specific in mind

Avoid going to the shops unless you specifically need something, particularly if the only reason you are shopping is that you are bored.

Make an ongoing list in your phone or planner of what you need as you think of it (I use Trello + it’s free! *Not sponsored just something I love) and take your list with you on your next trip to the shops.

Sticking to a list will allow you to limit your shopping to specific stores and aisles, helping you avoid the temptations of items not on your list. Not only will this help you save money but also save time, allowing you to use your time more wisely such as on a side hustle to help you pay off debt.

3. Shop around for mobile phone plans regularly

Phone bills can add a significant cost to your annual budget. To save money shop around for phone plans, particularly if you are on a no-lock-in contract arrangement and have the flexibility to move around.

Phone companies are always updating offers to attract new customers and if you haven’t researched in the past twelve months what offers are available to you, you may be losing out on some amazing savings.

By changing my phone provider, I was able to take up a phone plan for new customers that was half the price I was paying to my current provider for the same inclusions. This added up to a saving of $210 in the first year. It may not sound like a lot but that saving alone covers my gym membership for the next four months and that is definitely money better spent on my health. 

4. Limit dining out

Limit eating out where possible. With food delivery options at our disposal, it can be very tempting to just order food out more often than we should when it comes to our budget.

If you do want to go out, buy the meal you most prefer to eat out whether that is breakfast, lunch, dinner, or dessert. For me personally, I can easily make toast or pancakes at home so I would rather use my dining out budget to pay for dinner which is something much more time-consuming for me to create. I often opt for take away now, over dining in so I can drink my preferred drinks at home at a fraction of the cost (Coke’s are now $5 AUD at restaurants and I’m not loving it) and save more on dining out.

For dessert, often instead of paying $30 on top of our dinner bill at a restaurant, I’ll opt for ice cream at the movies or occasionally have some store-bought waffles on hand in the pantry which comes out much cheaper and certainly doesn’t seem like a sacrifice to me!

If you have a dinner outing that you don’t want to miss, opt for one of the cheaper menu items so you can socialise whilst avoiding blowing your budget. Alternatively, staying home and making dinner with friends or your partner is always a good compromise.

5. Start with reducing one of your regular expenses 

What do you buy regularly? Is it coffee? Chocolate? A soft drink at lunch? Pick one expense you buy regularly and try and reduce your spending on that one item. If you love coffee, buy a good quality coffee to have at home and bring your reusable coffee cup out with you.

Can you bring in a bottle and have water at lunch instead of spending $4 daily on a coke? Or just bring a can from home at a cost of $0.50 saving you $3.50 for each drink.

Could you cut back on buying the pricey vending machine chocolate on your afternoon tea and just bring some from home? Even if you just cut back slightly, or even make small reductions to a regular expense that will give your savings a kick start. Once you have swapped out one, try adding another!

6. Create a wish list with a wait period

Sometimes we don’t even realise we are making impulse purchases and taking a step back, or waiting just 24 hours to think about a purchase can help us be more intentional with what we are buying and bringing into our homes. 

Creating a wishlist is a great way to think about future purchases. When you come across something you want to buy, write it on your wishlist (again I use Trello for this!) and try and wait a period of time such as 30 days before buying the items you have listed. This will help you to avoid impulse purchases and make more informed decisions.

A wishlist allows you to truly assess whether this new purchase is a need or want if it will add value to your life and whether you want to part with your hard-earned cash in exchange for it. It also allows you time to consider other products, look into reviews, ask friends for recommendations and do price comparisons to make sure you are getting the best product for your needs at the best price.

Your wait period can start small and you can gradually increase it to what suits you. To begin with, set a goal to walk away from the shop, and say to yourself if I really want this I will come back to buy it before I leave. If you still want the item when you are ready to leave you’ll make the effort. I have saved so much from this method alone as it is a lot of effort to go back to a store. 

Making educated purchases can help you avoid suffering any buyer’s remorse, having to go through the hassle of a return, and save you any disappointment in your purchase.   

7. Review your utility plans

Have you been paying your utility bills on autopilot without reviewing what plan you are on? A quick call to your service provider or an online search for us Millenials who hate phone calls can save you hundreds in a matter of minutes. By contacting my utility provider I was able to switch to a new plan that offered a 16% discount for on-time or early payment. A quick ten-minute phone call has added up to hundreds of dollars of savings that have helped us to save money and significantly reduced our utility bills.

8. Unsubscribe from store mailing lists 

We are constantly exposed to advertising whether it be on the radio, TV, Youtube, or when we are checking our email. I even get a little ad at the bottom of my new TV, these ads are unrelenting!

My inbox is constantly being populated with new sales and offers from stores and became an unnecessary distraction. Unsubscribe to your unwanted shopping email subscriptions as they come into your inbox. When you aren’t being informed on sales 24/7 you will reduce the desire to go shopping and buy unnecessary things as well as the fear of missing out. Instead of having advertisements telling you what you need to buy, you can be more intentional and only add to your wish list the things that you need.

No knowing about a holiday or store sale is so freeing and goes a long way to help you spend your money with intention.

9. Stop paying ATM and monthly bank fees

No one likes paying bank fees, there is no benefit to us for these costs which makes this expense a great place to start saving money. Learn where your bank’s local ATMs are and avoid withdrawing cash from other bank tellers.

Each withdrawal is at $2.50 or more which does add up, particularly if you are only withdrawing small amounts. Think ahead or pay by card where you can. Consider getting a card that gives a 100% ATM fee rebate. More and more banks are offering this now which is great to see!

I recently used my bank card overseas and saved $$$ on international transaction fees as they were reimbursed by my bank (do your research before travelling to see which bank card will be best for you when travelling).

Another expense that adds up is monthly bank fees. If you are being charged a monthly bank fee, contact your bank and ask them to waive fees on any bank account. Generally, they will if you deposit a certain amount or more into the account each month. If you are being charged monthly bank fees on your mortgage consider changing your home loan to a fee-free one (this always grinds my gears, I refuse to pay banks a fee for the privilege of paying them interest) or asking for those fees to be waived. These small banking fees add up month to month, year after year, and are much better in your bank account.

10. Review your super accounts

Do you have one superannuation account for every job you have had to date and have yet to consolidate them? Each superannuation account charges administration and investment fees, and insurance fees which you could be paying for twice, or more across multiple accounts. By having more than one superannuation account you are throwing away a large chunk of your retirement savings.

Consolidating your super is a lot easier than some might think. Most super funds just require you to fill in a Consolidate Your Super form and will contact your other superannuation fund to transfer your balance into your new account on your behalf. You can learn more about this process here. It may seem like your retirement is a lifetime away but every dollar you can save today is going to make your life a lot easier in the future.

11. Sign up to your local library

I recently joined my local library after hearing about the access to borrowing eBooks and audiobooks. I never go to the library, but could not pass up access to free ebooks and audiobooks on my phone. You only have to go to the library once to sign up and after downloading the OverDrive app you can borrow eBooks and audiobooks for free without having to leave your chair.

I’ve listened to and read countless audio and eBooks this way. If you aren’t too set on only reading physical copies this is a great way to read more and save money on buying books. They might not have every book you are after but you can go on a waitlist for your preferred one.

There you have it, 11 Everyday Tips to Help You Save Money. I hope these were helpful for you to save some extra cash this year.

Do You Want to Learn How to Spend Your Money With Intention?

If you want to learn how to spend your money with intention and in line with your values and take the stress and anxiety out of your money, book in for a free Q&A call to see how Minimise With Me financial coaching can help you gain clarity around your finances! 
 
You can learn more about Minimise With Me Financial Coaching services via the link below. 

Which one of these are you going to take action on in the next 7 days? Comment below with your favourite you want to get started saving with!

Budgeting

How the Debt Snowball Can Get You Debt Free Faster

There is no faster ticket to financial freedom than being debt-free. Having debt can weigh us down and keeps us stuck, making it difficult to make the changes we want to in life for the better.

When we are in debt, more of our money goes to covering past decisions rather than funding future opportunities.

When you don’t carry debt, you free up your hard-earned money to put towards the things that truly add value to you such as, adding to your retirement savings, saving for a goal that is important to you or changing to a new career that you are passionate about but that involves taking a pay cut.

Several years ago, I came across the Debt Snowball Method for reducing your debts, being just one of numerous debt repayment methods.

I’d always considered focusing on the interest rate the smart way to go about debt repayment. It seemed more financially savvy to me to focus on the dollars involved and the interest saved.

But since discovering this method of debt repayment, I could also see the benefit in paying off debts from the lowest to highest balance over-focusing on the interest rate or dollars saved.

It is really a personal preference, personal finance is just that, personal!

Benefit of the Debt Snowball Method

The main benefit of the Debt Snowball, is that this debt repayment method is designed to give you ‘quick wins’ when it comes to your debt as you focus on paying as much as possible onto the lowest debt until it is paid off. This is a great debt repayment method for people who have a number of debts with different balances and who need that little extra reward when it comes to sticking out their financial goals.

Paying off debts is a hard slog. When you see how many years and repayment periods are left on your debt, it may seem like there is no light at the end of the tunnel and you may feel like you will be stuck paying those debts off indefinitely.

The key to the Debt Snowball is building momentum. Building new habits is tough and we often need instant rewards in order to keep us working towards our goals and that is why this debt repayment method can give us the small financial wins that we need to stay motivated when paying off debt!

When we want to lost weight we join a gym and closely watch the scales. It can be hard to stay motivated when those scales don’t budge in the beginning. When you finally lose that first kilo, it feels amazing! And all your effort starts to feel worth it. The small win, helps you stay focused and feel more determined on your weight loss journey.

Can you imagine trying to lose weight if you didn’t notice any benefits for 6 or 12 months? This is why the Debt Snowball can be so effective at helping you get on top of your debt. It focuses on knocking down the smallest and easiest debts to tackle first. With each debt repaid, you can see your progress a lot sooner than if you attempted to pay out a much larger debt.

There are no short-term solutions to paying off debt. It is likely going to be a slow and difficult journey but one that will be well worth it!

Imagine all the things you could be doing with your cash if you were debt-free:

Buying your first home, being able to finally take that dream holiday, starting your own business or investing for your retirement. These goals will be easier to fund once you get your lingering debt out of your life!

Keep these dreams at the forefront of your mind! If you have a partner, discuss what your dreams are together. Maybe you have the same dream, maybe they are different. But these dreams are going to be the motivation you need to keep going when things get hard.

>> If you like this post, you’ll love: “10 Easy Tips Save Money Groceries Budget“<<

But just before you dive into how to start your Debt Snowball I want to talk about something that is extremely important for your financial journal and a must before starting your Debt Snowball – the importance of building an Emergency Fund!

BUILDING AN EMERGENCY FUND

Before attempting to Snowball your debts you need to save an Emergency Fund. This will be a financial buffer for any financial emergencies that pop up whilst you are paying off your debt. It’s critical to have an Emergency Fund as you can’t pay off your debt whilst you are still living off your credit cards and adding to your debt. We don’t want to keep digging a hole for ourselves while we are trying to pay it off. You’re just going to end up back where you started and finding the whole process slowly destroying your original motivation to get on top of your debt.

Many finance experts recommend having an Emergency Fund between $2,000 and 3-6 months of expenses. I recommend having a starter Emergency Fund of at least $2,000 or ideally one month’s expenses set aside for financial emergencies at a minimum. This is a reasonable savings buffer to help you in times of emergency to put out any financial fires that come up whilst you are paying off your debt.

Of course, some of you may not feel comfortable with such a small Emergency Fund, so if that is you, you can certainly bump that up to 3-6 months’ expenses. But you do need to weigh up how much you want to set aside. It doesn’t make much financial sense to save a huge amount earning 1% in interest when you are paying 22% interest on your credit cards! That money is going to serve you better by paying down your high-interest debt!

Do what it takes to save up your Emergency Fund quickly so you can start paying down your debt as fast as possible. Ensure that your Emergency Fundis only used for emergencies. If you need to replace a tyre or you have a dental emergency, the money will be there for you. Just be sure to save up and top up your Emergency fund again as soon as possible!

Once you have saved your Emergency Fund you can move onto your Debt Snowball.

Check out these 40 Side Hustles to Help You Pay Off Your Debt Quicker!

THE DEBT SNOWBALL

With a small amount of planning, you can be well on your way to paying down your debt.

Please remember, this is just one of many debt elimination strategies so you don’t have to use this approach to pay off your debt if it doesn’t resonate with you.

Here are the four steps to use the Debt Snowball Method.

Step One:

Write down all your current Consumer Debt (Exclude your mortgage) in an Excel worksheet or on a piece of paper. Go back to your loan paperwork, online banking, or credit card statements and work out what your current debt balances are for all outstanding debts as of today.

Then, take note of what Interest Rate you’re paying and your monthly Minimum Repayment.

For the Australians out there, getting a current HELP loan debt statement is not possible as these are only sent out annually with your tax return. Instead, enter the HELP balance that was on your most recent Tax Assessment paperwork and make a note to update this when you get your next one.

Step Two:

Once you have written all your debts down, number them from  1, 2, 3 and so on from the smallest balance to the largest. Debt Number 1, the smallest debt balance will be the one that you are going to pay off first and attack with your Debt Snowball first. The last debt will be the highest debt balance.

Work out based on your budget, how much extra on top of the minimum repayments you can afford to put on your smallest debt for that month. If your lowest debt has a minimum monthly repayment of $25 and you can spare another $100 a month, start paying the $25 minimum repayment plus the additional $100 repayment, or whatever it is that you can afford.

Continue to pay Debt Number 2, 3 and so on as minimum repayments. Continue to do this until Debt Number 1 is fully paid off. Be sure to utilise any additional income, such as bonuses or tax refunds to go towards your debt. We want to make sure we are throwing every dollar we can at our debt! If you were under budget for the month, you can add that extra money as an additional top-up payment on your Number 1 debt to help you knock it down even faster.

Step Three:

Once your smallest debt is repaid, take the minimum payment for Debt Number 1, in the example above, that would be $25 a month, and add your additional repayments of $100 a month and add this to the minimum repayment for Debt Number 2 – your second lowest debt.

This means you will now be paying a much larger amount on your second debt – saving you significantly in interest and getting you to your debt-free goal much quicker. If your monthly repayments for Debt Number 2 were $40 you will now pay the minimum amount of $40 plus the $25 and $100 you were using to pay off debt number 1. In effect you are building a ‘snowball’ of your repaid debt repayments! Continue to do this until debt number two is paid.

Step Four:

Continue to do this for each of your debts in the snowball until the last one is paid off. For each new debt paid off, you will be taking the past minimum repayments plus your additional repayment and carrying it forward to the next debt in your snowball. Like a snowball, the repayment for each will grow and pay off a bigger chunk of each debt as it grows and moves to your next biggest balance.

Debt Snowball Worksheet

In order to help you keep track of your Debt Balance and Debt Snowball Repayments, I have created a Debt Snowball Worksheet so you can keep all your Snowball info: Current and Closing Balance, Interest Rates, Minimum Repayments and your Snowball Repayment in the one place.

It will help you to create a monthly budget so you can pre-plan how much you have to pay towards your Debt Balances and will calculate your Debt Free Date each month so you know when you will be debt-free!

Check out the Debt Snowball Worksheet to help you to track your Debt Free Journey and motivate you on your Debt Free Journey!

Your Debt Snowball Worksheet Will help you to Track Your Debt Free Journey

STOPPING THE DEBT CYCLE

Here are some tips to help you stay out of debt and to help you get to your debt-free journey sooner:

  1. If you can’t afford it, don’t buy it. This one may seem obvious, but in 2020 the 6 million active Buy Now Pay Later Users (Source: RBA) in Australia haven’t got this memo. If you are using credit cards, whatever you are buying you are likely paying 20% or more in interest each month whilst that amount remains unpaid. Does that sale price look so good now?
  2. Cut up your credit cards. If you are the kind of person that can’t resist a good deal, you can’t pay your credit card off in full each month it might be time to cut those cards up or hide them away until you have got your finances under control, where you can afford to pay them off in full each month.
  3. Start setting goals! It can be easier to part with your hard-earned cash when you have no plan or goals for your money. Having a goal can help you keep that goal top of mind and help you when making purchasing decisions. You can ask yourself, do I really want this extra pair of shoes I don’t need or do I want to keep that money for my holiday?
  4. Learn to be content with what you have. Do you really need a brand new $35k car on finance when your current car works perfectly fine? Are you willing to pay x dollars every month for the next 60-plus months? In good times and bad – when you are unemployed, when you are trying to live on one income when you decide to cut back hours at work to study for a new career – that debt is going to still be there!
  5. Avoid shopping! It’s surprising how little you spend when you avoid going to the shops unnecessarily. If you have endless emails from clothing shops or stores that tempt you unsubscribe from them as well. Instead of going shopping, meet a friend for coffee, read a book, watch a movie. There are plenty of hobbies that are much cheaper and more valuable uses of your time.

Minimise With Me Financial Coaching

If you are still struggling with paying off your debt and staying motivated on your debt-free journey, consider hiring a Financial Coach to help you achieve your financial goals. You can check out Minimise With Me Financial Coaching Services here for more information on how you can start spending your money with intention so you can spend your money with intention.

For tips on how you can save more money to help free up cash for your Debt Snowball check out 11 Everyday Tips to Save Money.

How would you feel if you were debt-free? How would it change your life? Let me know in the comments below 🙂

Budgeting

10 Easy Tips to Save Money on Your Groceries Budget

Grocery shopping can make up a big portion of the weekly family budget and quite possibly one of your biggest expenses next to housing and child care. If you are not aware of your monthly grocery spend those supermarket trips can easily add up and blow out your budget. If you are keen to save money and make your income go further, reassessing your grocery budget can be a great place to start.

Don’t forget to give the Grocery Budget Challenge a go at the end of this post! 🙂

Here are 10 Easy Tips to Save Money on Your Groceries Budget that can help you plan ahead and that can quickly add up to some great and easy savings on your grocery bills.

1. Always bring a list with you and stick to it

Save money on groceries by having a shopping list on your fridge. This is my number one tip to save money on your groceries budget! When you are out of something, write it down and by the end of the week, you’ll have a list of things to buy that you actually use. Avoid walking into a supermarket unprepared! Once you are in the store, resist adding to this list with impulse purchases by completely avoiding aisles that don’t contain items on your list.

2. Resist buying large quantities of new products

Avoid buying new products or if you can’t resist, only buy one to try it out first and see if you like it to avoid ending up with multiple items that you may not like. We quickly learned that often new food or products we would buy on sale were more often than not left unused and taking up space in our pantry or cupboards. Sometimes it is best to stick to using our trusted and preferred brands of products to eliminate waste and save money!

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3. Shop online to help resist impulse purchases

Do your grocery shop online when you can. It’s easy to see what products you regularly purchase are on sale and helps you streamline your grocery list. I grab my shopping list, sit down for ten minutes, and order what is on that list and pick it up at a convenient time or get it delivered. Not being in the store means you avoid the additional temptation to make unnecessary purchases and helps you stick to your budget.

4. Buy only what you need and avoid excessive bulk purchases

Don’t overstock on sale items. Just because something is on sale doesn’t mean you need to buy a year‘s supply of it! Most popular items go on sale on a rotating cycle every 3-5 weeks so you needn’t be preparing for the apocalypse! (2021 update: Then covid and panic buying hits’;))

Try and keep in mind how much you need when shopping to avoid wasting money on groceries you won’t end up using. I know that I can buy a large packet of carrots for only 50c more, but I always go for the smaller packet so they don’t end up in the bin, and I save myself the 50 cents. Alternatively, if you do buy a little bit extra, make sure you store the items correctly so they will last longer such as in a container or in your freezer.   

5. Store food correctly to prolong life and reduce waste

Learn how to store food correctly in order to prolong its life. Some food such as potatoes and onions should be stored separately, tomatoes ripen better out of the fridge, and herbs and carrots thrown into a glass of water will last a few days longer than in the fridge. This will ensure you get as long out of your fresh produce as possible saving you another trip to the store and money.

Check out: How to Reduce Your Waste Footprint for more tips on how to reduce waste in your home!

6. Save with DIY Cleaning products

Reduce cleaning supply bills by making your own DIY cleaning products for a fraction of the price as well as limiting the cupboard overflowing with different products for each cleaning task. Bicarb, dishwashing liquid, water, and white vinegar alone can clean most areas of the home, as well as being safer to use inside the home. Cleaning products can contribute a huge portion of your grocery bills and can be a great way to save money on your groceries budget. 

7. Switch to machine-washable cloths

Switching to machine-washable microfiber cloths can help save endless dollars on dishcloths. A pack of microfiber cloths can be obtained for $5-10 and can be washed again and again to save you from replacing cloths regularly. Simply use and put in a washcloth pile to wash once a week. Other savings tips for regular kitchen cloths is to soak them in vinegar and heat them in the microwave for a couple of minutes to kill bacteria or to throw them in your dishwasher cycle at least once a week.

8. Meal Plan 

Meal Planning can be an easy way to save money on groceries. Base your shopping list on what meals you could make with the ingredients you currently have in your pantry or fridge. Add any additional ingredients required for those recipes to the shopping list. If you’re buying something that will not be used up in one meal, incorporate the leftovers into your next meal so you can avoid food waste or freeze the remaining portions where possible for next time.

Just ten minutes a week of meal planning can save you hundreds over the year and drastically help reduce food waste in your home.

Start saving money today with your Weekly Meal Planner Printable

9. Research specials online or in catalogues prior to entering the supermarket 

Buying more expensive items such as beverages, beauty, and cleaning products can add up over time when paying full price. In order to easily save money on your groceries budget, check out the weekly catalogues for your local supermarkets.

Make separate lists for your groceries based on what you are planning to buy in each and shop according to what store has the best price. This might take a little longer, but the savings can be very much worth your while. If you do online shopping this can be even easier where you can just order from different stores and get pick up or home delivery to avoid multiple trips (but with the cost of delivery it might be more savvy to pick them up from the one shopping centre if possible).

Alternatively, go to the shop when it suits you, it doesn’t have to be on the same day, if you will be near one today and another on the weekend grab what you need when it is convenient.

10. Pay attention to the ticket pricing per weight

In Australia, supermarkets are now required to include easy price comparisons on their pricing tags such as price per 100 grams. You can now easily compare various sizes and prices of similar products from the price tag on the shelf. This can be done much quicker than before when you’d be trying to work these things out in your head or with your calculator and can be an easy quick way to decide in-store or online what is the best value for money product to buy.

Grocery Budget Challenge

If you like the idea of a challenge here is one for you!

I want you to calculate how much you have spent on groceries over the last 3 months, so your monthly grocery budget spend. The steps are below:

  1. Simply go through your bank or credit card statements and add up all amounts spent on groceries over the last 3 months (so working backward from today by 3 months) and total up how much you spent. If you want a more accurate figure, go back 6 months and total up the grocery spend.
  2. Divide the total grocery spend you calculated by 3 or 6 months (however many months you went back in your statements).

This will give you your average monthly spend on your grocery budget.

With the above 10 tips in mind and your average monthly spend amount, I then want you to try and decrease your average grocery budget from what you calculated by 10%. So if your grocery budget came to $700 a month on average, I want you to try and cut it down by 10% ($70 in this example).

See how you go! You might find that you can easily cut it by 10% or more, and can redirect those savings to another financial goal! And even if you can only save $10 a week on your groceries, that’s still a whipping $520 a year back in your pocket! How awesome is that?! 🙂

For more tips to save on your grocery budget check out 6 Tips to Drastically Cut Your Grocery Bill and 15 Tips to Reduce Food Waste and Save Money!

Do you have any tips to save money on your groceries budget? How did you go with the Grocery Budget Challenge? Leave a comment below to let me know! 🙂

Budgeting Freebies

Grocery Budget Challenge

Grocery Budget Challenge

I want you to calculate how much you have spent on groceries over the last 3 months, so your monthly grocery budget spend. The steps are below:

  1. Simply go through your bank or credit card statements and add up all amounts spent on groceries over the last 3 months (so working backwards from today by 3 months) and total up how much you spent. If you want a more accurate figure, go back 6 months and total up the grocery spend. 
  2. Divide the total grocery spend you calculated by 3 or 6 months (how ever many months you went back in your statements).

This will give you your average monthly spend on your grocery budget.

With the above 10 tips in mind and your average monthly spend amount, I then want you to try and decrease your average grocery budget from what you calculated by 10%. So if your grocery budget came to $700 a month on average, I want you to try and cut it down by 10% ($70 in this example).

See how you go! You might find that you can easily cut it by 10% or more, and can redirect those savings to another financial goal! And even if you can only save $10 a week on your groceries, that’s still a whopping $520 a year back in your pocket! How awesome is that?! 🙂     

For more tips to save on your grocery budget check out 6 Tips to Drastically Cut Your Grocery Bill and 15 Tips to Reduce Food Waste and Save Money!

Budgeting

7 Reasons Why You Need An Emergency Fund

A woman is sitting in front of her computer looking stressed.

If you are struggling to pay your bills and constantly going into debt to pay for your expenses, you probably don’t have an Emergency Fund.

Dave Ramsey recommends an emergency fund of 3 to 6 months expenses once you are consumer debt-free to weather unexpected financial costs. It really is as basic as that, cash set aside for emergencies only.

A 2018 Report on the Economic Well-Being of U.S. Households in 2018 found that 40% of those surveyed could not afford a $400 emergency which means a huge number of Americans could be unable to afford urgent expenses like car repairs or medical treatment leading to a lower quality of life.

I would argue that having an Emergency Fund is the single most important financial step. You need a buffer between life and you.  And here’s why!

7 Reasons Why You Need an Emergency Fund

  1. Because shit is always going to hit the fan

Of course, you have heard of the saying when it rains it pours so you should accept the reality that things are not always going to be smooth sailing. Things are going to come up, break down, medical issues can appear, bills can blow out and pinch your budget so the sooner you accept this and prepare for those things in advance the better. As the Economic Well-Being of U.S. Households in 2018  survey found. 40% of respondents said would not have the money to cover a $400 emergency. This should scare you as much as it scares me. Being a daredevil with your finances is going to get you in hot water.

Consider the following scenarios.

  • Your car breaks down and it is going to cost $1000 to fix it.
  • Your electricity bill came in at $500 instead of the usual $250.
  • You chip a tooth and end up needing a root canal that sets you back $1300.
  • Your hot water heater dies and you need $1400 in a matter of 24 hours in order to have hot water.
  • There’s a storm and both your cars and home have hail damage and you have to pay 3 insurance excesses.

All of the above have happened to me and I am sure you have your own expensive financial stories to tell (Please do let me know them in the comments below!)

Don’t be that person that is in a bind because they didn’t acknowledge life is going to throw you lemons and didn’t make a small sacrifice to save an Emergency Fund.

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2. It will stop you from going into Debt

A lot of people don’t bother with Emergency Funds and instead rely on credit cards to finance emergencies. The problem with this is if you are paying for every emergency that comes up with a hefty interest rate, and then only repaying the minimum repayments, before long you are going to wrack up a large amount of debt.

If you are trying to get out of debt you are spinning your wheels paying off debt and then taking more for “emergencies”. If this is you, you may notice that you are not going anyway with your debt goals.

Instead, set yourself a new rule – don’t reach for the credit card to pay for your emergencies. Plan ahead and save up so you can utilise your emergency fund instead when unexpected emergencies appear. You can then use your own cash, it will be interest-free and is there for this exact scenario and completely guilt-free.

3. To ensure you have your basic needs met no matter what

Everyone has basic needs they need to survive. Don’t let your or your family’s basic needs be ignored because you haven’t prioritised and put away an emergency fund. If you or your loved ones have a toothache, your pet needs medication or you need some emergency plumbing, the last thing you want is to not be able to do what you or your family needs.  Who wants to deal with a blocked toilet or toothache for longer than necessary because you don’t have the money?

No one wants to miss out on basic needs so don’t let that become a reality. Get yourself an emergency fund as soon as you can!

4. You are a homeowner

This should go without saying, but if you are a homeowner you need an emergency fund. The one truth about housing is there are always costs you don’t expect! Whether it’s paying for an insurance excess, fixing a leaking tap, or an electrical issue, housing emergencies will rear their ugly head at you more than you realise. And they don’t wait for you, sometimes they will even hit you at once. As I mentioned above, we had to pay $2100 in insurance excess for our house and two vehicles that had hail damage, in the same month that our hot water died which set us back another $1300. Had we not been prepared for unexpected house repairs we would have been under a lot of stress to come up with that money in a rush.

5. You have only one stream of income

Even if you are a two-income household if all your income comes from one source E.g your full-time job, it is important that you have an emergency fund to weather any periods of unemployment  You hear it in the news all the time, people come into work and are shortly leaving with their belongings after being told they no longer have jobs.

Just imagine for a second how scary it would feel to have just been told you no longer have a job.

Please, don’t wait to find out how crap that shock feels, plan ahead and save up your emergency fund now.  Losing your job when you have a few months of expenses stashed away gives you a buffer and time to plan your next steps in your career. And at a time like losing your job, time is what you are going to want.

6. You live away from your family

If you live far away from your family having an emergency fund is a must. You never know when you might need to travel to see your family expectantly. And if there is a family emergency you don’t want to be stuck at home because you’re broke. You’re going to want to be with your loved ones. Make sure at all times you have enough saved to go back home if you ever need to so you don’t have to miss out on being with loved ones at important times.

7. Peace of Mind

Having an emergency is one of the best things you can do for your peace of mind. Life is stressful enough,  anything that you can reduce stress and anxiety is a good thing! When you have an emergency fund you know in the back of your mind that you can tackle any unexpected expenses head-on and unexpected issues don’t have to cause you more stress than necessary.

If your tyres need to be replaced, no worries. If your relative is ill and you really need to go and see them, it’s okay you’ve got the money – go and see them!  Did you lose your job? Okay, that’s a biggie, but you know that you’ve got some money stashed away for this exact reason and you can afford to cover your bills for some time until you find a new job.

A little bit of planning ahead and sacrifice will pay dividends to you in crucial times and help stem that worry we all have about unexpected costs.

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Where should I keep my Emergency Fund?

Your Emergency Fund needs to be somewhere accessible, but not somewhere so accessible that you can spend it. Don’t keep your emergency fund lying around at home in cash. This is a sure-fire way to spend your emergency nest egg on pizza. And don’t invest it in the stock market. you want it to be accessible within 24 hours for emergencies. The safest place to keep your Emergency Fund is in a completely separate bank account (ideally one that is fee-free!) so you can access it as you need it, and it’s going to stay there and not be at the mercy of the stock markets.

You’re certainly not going to make money off it other than a small amount of interest, but that’s okay. This money isn’t there to make you money it’s there to keep your head above water and be ready to grab if and when you need it. Anything above this amount you can always invest how you choose but keep that outside of your Emergency Fund savings.

How Much of Emergency Fund Should I Have Saved?

This depends on your current scenario. If you have debt other than a mortgage, any of the following:

  • Credit Cards
  • Car Loans
  • Personal Loans
  • Medical Bills
  • Tax Debts
  • Student Loans
  • After Pay

or any other consumer debt, I recommend that you have a $2000 emergency fund.

This will give you enough of a cash buffer to cover a car repair or a small house repair and not require you to go into debt to cover any emergencies.

But if you have no consumer debt (go you!) now is the time to boost that emergency fund to 3-6 months of expenses. This is your super-duper Emergency Fund which is going to help you weather bigger financial stresses such as a medical emergency or a job loss.  Again, regardless of the balance, leave the Emergency Fund in a bank account – do not invest it. 6 months of expenses may seem like a lot of money to have earning next to no interest but it’s 100% guaranteed to be there ready when you need it.

When is it okay to Use My Emergency Funds?

It’s extremely important that you use some self-restraint when it comes to your emergency fund. It is there for emergencies only.

Needing to go on a shopping spree is not an emergency. Nor is wanting a better car than you have.

You should only use your emergency fund when it is absolutely necessary. Some examples of scenarios where you might use your Emergency Fund are:

  • Your car breaks down and you need it to get to work.
  • You have a family emergency and need to travel.
  • You have a medical issue that requires urgent attention
  • You need an urgent house repair (not an upgrade!)
  • Your glasses break and you need to replace them.

Of course, when your should use your Emergency Fund is subjective but be realistic, ask if it really is an emergency, or are you just looking for an excuse to dip into some cash?

Here are some scenarios you should resist dipping into your Emergency Fund for:

  • You need a new dress for a wedding
  • Your friends have asked you to come on a holiday with them
  • You really want a new puppy but don’t have the cash
  • It’s Christmas and you forgot to save up ahead
  • You’re rooms looking a bit drab so you want to buy some new bedding

What happens when I use my Emergency Funds?

When you have used any of your Emergency Fund it is now time to top it back up! Here are a few suggestions for you to do this:

And there you have it, all you need to know about Emergencies Funds and why you need one!

[Photo: Thought Catalog on Unsplash.com]

Comment Question: When were you in a financial bind and having an Emergency Fund saved you or, not having one caused you stress? Let me know in the comments!  

If you found value in this post I would be super appreciative if you could share it with others who might also find value in it 🙂

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18 Tips to Help You Break the Debt Cycle

Being stuck in the debt cycle can seem like a treadmill of stress and struggle to try to keep ahead of what may seem like never-ending repayments. Once you add a mortgage, car loan, a few credit card repayments, and some BNPLs to your budget finding any spare cash can become increasingly difficult and make it harder to break away from debt and get back on your financial feet.

If you are constantly making purchases with your credit card and not paying them off in full the following month you are going to eat up a lot of your hard-earned income in interest payments. Money which could be better utilised whether that be; saving for a new home, saving up for your child’s education, putting away for your retirement or having some spare cash for enjoyment such as holidays or seeing your favourite band in concert.

No matter where you are on your journey to financial freedom, there are methods to help you get on top of your debt. Even for anyone with significant amounts of debt, their financial story isn’t over and they can potentially have the most options for action in terms of retraining their habits and living within their means. No one needs to live under a cloud of debt indefinitely. There is a way out!

18 Tips to Help you Break the Debt Cycle

1. Think about the Interest Rate

It can be so easy to forget that the price tag of the item you are about to swipe on your credit card is not the final price you will pay if you don’t pay your credit card off in full when the bill comes.

If your credit card’s interest rate is a whopping 20% or more, every purchase you make on that card that is not paid in full will attract hefty interest charges.

That $99 dress that was 50% off that you just charged will cost you a hell of a lot more over the years if you don’t pay off your credit card balance.

And it doesn’t stop there, that is just one purchase – imagine that interest on every purchase you make! That sale price doesn’t look as good now does it?

2. Cut up your credit cards

If you are the kind of person that can’t resist a good deal and you don’t pay off your credit card in full each month, it is time to cut those cards up! Stop spending money you don’t have. It sounds harsh but really is that simple. If you can’t show restraint, take the easy step of grabbing a pair of scissors and cutting up that card. It will only take you a few seconds and save you a world of stress and hardship in paying off any extra debt. Don’t let your debt keep spiraling out of control. You can get out of this and you can start today by cutting up those credit cards!

If you are buying everyday purchases on the card and are not paying them off in full at the end of the month you need to reconsider your income and expenditure and spend less than you earn. The only reason to use a credit card is to have it as a tool to keep track of your expenses, to earn rewards points on everyday expenses, and only if you are paying it off monthly! If you are disciplined enough to do this you can save yourself some serious money by keeping your day-to-day cash in your mortgage offset account or in a high-interest savings account. Otherwise, get those scissors out!

3. Stop trying to impress others

A lot of people get caught up in looking at other people’s lifestyles and attempt to keep up with them. I guarantee no one ever asks the same people they are trying to compete with – how much debt do you have? Yeah sure, Joe down the road might have your dream car but he probably also has a $200 weekly car repayment to make for the next 7 years which probably isn’t as appealing to your green-eyed monster.

Yet so many people go out and buy new cars, bigger homes, or brand-name designer fashion to fit in with others without a thought for the struggle that is going to put on their finances, such as affording the basic needs of food, shelter, medicine, or their education. Break the debt cycle!

Do you feel the need to buy the latest fashion and accessories? You might be surprised to find that other people are probably not that interested in what you are or aren’t wearing. People are too worried about their own lives to focus on your daily outfit choices or the fact that you only spent $50 on your handbag rather than $300.

I have often had handbags under $50 and constantly got compliments – no $300 designer bag necessary! I remember my friend’s 21st, I asked her where she got her amazing dress from and she said a second-hand shop! You don’t have to spend big to have nice things in life!

If you are surrounding yourself with people who expect you to meet some kind of designer brand level of outfit choices, your probably need to reconsider who you hang out with or reassess if those friends even really care. Maybe it is your own standards you are trying to keep up with.

4. Avoid shopping without a list

Stop going shopping unnecessarily! You’d be surprised how little you’d spend if you didn’t step foot in the shops at all or open the latest sales email. If you have endless emails from clothing shops or stores that tempt you constantly, unsubscribing from them can help remove that urge to buy.

Make a goal of only going to the shops when you need to and go with a list of what you need to buy and from where that you have built up over a week or more. Don’t walk down the makeup aisle if makeup is not on your list. This alone can help you resist unnecessary purchases as most spending occurs when you are browsing which can end up with you buying something you don’t need and will later regret.

Shopping with a carefully prepared grocery list can go a long way to saving money on your weekly shop that can be redirected to paying down your debts faster!

5. Take advantage of new credit card balance transfers

If you want a leg up to pay off your credit card balances, you can consider a balance transfer to a new credit card, some offer 0% interest on the balance for a certain period of time, usually between 6 to 24 months. This can potentially reduce the interest rate you are paying on your credit cards to 0% and help you get on top of your debt in a short space of time.

Only do this if you cut up the new card immediately otherwise you will end up back where you started. Also, be sure you will be able to pay the balance transferred onto the new card within the low-interest period. The new interest rates can be significantly higher usually starting at 19.99% post the discounted interest period so you will want to pay it back within this time frame to avoid the increased interest rates.

This can be a great way to smash that debt balance in a defined period of time at a lower interest rate. Do not under any circumstances add to the balance of this new credit card. It is not for you to spend with, but as a tool to help you get ahead and pay down that debt!

6. Ask your credit card provider for a better rate

Alternatively to the balance transfer option, call up your current credit card provider and ask for a better, more competitive interest rate. If they want to keep your debt on their books they will have to meet your request and better your interest rate. This will save you on interest charges without the time limit of the balance transfer option.

7. Always pay more than the minimum on your credit card debt

When paying off your credit cards always pay as much as you can onto them each month – avoid only paying the minimum. If you can only afford the minimum find a way to change that – cut other expenditure, get a higher paying job, or a second job to increase your income if changing jobs is not an option. Temporary pain will be required to achieve financial freedom.

By only paying the minimum repayment you can add decades and thousands in interest to the debt you are going to have to pay off. Using Money Smarts Credit Card Calculator a $2,000 credit card balance paid back at the minimum repayment of $41 a month would take over 21 years to repay and cost over $6,500. That means you will in effect be paying for those $2000 purchases three times over for the next 21 years! And for some people, $2,000 is just one month’s expenses. Imagine if this is being charged, month after month. The horror!

Never settle for only paying the minimum repayment. There should be a disclaimer under the minimum repayment on your credit card statement that reads: “what to pay if you want to be in debt forever and pay 3X the price of everything you’ve ever bought and have no desire for financial freedom”.

The only time you should utilise the minimum payment is if you are using the Snowball Method or other debt repayment options and throwing all your spare cash onto the lowest debt and slowly knocking each one to zero.

8. Ask yourself if this purchase is a Want or Need

It is important to consider what our wants are versus our needs. Every time you pull out the credit card or cash, ask yourself is this a want or a need?

If it is a want, something that you’d like but could live without, ask yourself if this purchase is so important to you that you are willing to be snowed under by debt in order to have it?

Is it worth paying potentially 3X (or more) the purchase price of the handbag or new runners over a period of years? Or would it be better just to hold off a couple of weeks or months and save up the cash?

If it is a need and you have truly considered it, go ahead and buy it, but if it is an essential expense it should be covered by your budget and not paid for with debt.

If it doesn’t seem worth spiraling into more debt, rethink your purchase. Sometimes we can become so desensitised by buying things with a simple tap that we forget to stop and ask ourselves these important questions.

Being more mindful with everyday purchases can aid us significantly to break the debt cycle!

Shops are designed to make us want to spend more money. Whether it be the loud music, the vanilla caramel-scented candle wafting through the store, bright lights, styled displays or the pushy sales staff. Take a moment to stop and assess whether buying this item is going to add to your long-term happiness or take away from it.

9. Channel your excitement into your savings

Make the decision to buy things in cash going forward. By buying in cash and saving up for highly desired items you can give yourself the time to save up money gradually for it. You will be surprised how easy it can be to save for something that you really want when you know that after all that hard work you will have that item you desire – debt and guilt-free.

When you really want something, you will know if it is worth your hard-earned money as you will be making the necessary sacrifices to get it. You might start spending less on eating out each week or skipping regular drinks nights in order to save to go on that first overseas holiday.

When you save towards something you want and work hard in order to acquire it, instead of feeling a sense of guilt or buyer’s regret, you will feel a sense of accomplishment and joy knowing that you worked hard and saved for something meaningful that was going to add value to your life and that you paid for in cash. There will be no looming debt hanging over your head for months or years to come.

I can’t imagine anything worse than going on an amazing two-week holiday and coming back to deal with the debt that remains after the fun is over. It’s going to be a lot easier to be motivated to save leading up to that amazing experience than once it has been and gone and you are dealing with the debt consequences.

10. Buy what you can afford, not what you can borrow

When we bought our first home we were surprised to see how much the banks were willing to lend us. As I did our actual budget (not the bank’s budgets they use to justify lending you a huge mortgage) we could see how borrowing the larger amount was going to be a huge financial strain.

Instead, we stuck to a mortgage that would be well within our budget which will go a long way to help us break the debt cycle. This included built-in safeguards that gave us some extra financial security in case rates went up or in the event that we had to live off one income.

Only you know your true spending habits and what you can reasonably afford to pay back. Don’t let others convince you that your borrowing power is bigger than it really is. Check out the benefits of a smaller home (and mortgage) here.

11. Don’t become accustomed to the mentality of having debt repayments

I have seen this happen time and time again with young and old alike. They pay out their perfectly good car after 5-7 years of repayments and immediately start talking about what car they want next.

Even though they have a perfectly functioning car, with time on their side to save for the next one, the thought of saving up for a car over time, or having a slightly older car is considered too painful, so they go out and get another car loan.

Break the cycle! Be weird and say no to debt!

If your car is reliable and not that old and mechanically sound, it is so bad that you hold onto it for a couple of years more and save up to buy your next car in cash completely debt-free? Paying $100 or more a week for the next 5-7 years is a big commitment and is going to get old fast!

12. Reassess what you are willing to get a loan for

Be selective with what you are willing to go into debt for. Only go into debt for purchases that increase in value or are considered an investment. Getting a degree in your chosen career can lead to a higher salary, and a house can provide a return through equity.

On the other hand shopping sprees on the credit card, holidays and a new car aren’t an investment and don’t hold their value so going into debt for items like these should be avoided.

Do you want to be paying off a shopping spree years down the track after the clothes are out of style and most likely already donated to charity or sitting in the back of your wardrobe?

If you need to get a mortgage for a house that will increase in value over time, that can be considered “good debt” but a $2,000 credit card balance for some new clothes for summer is not “good debt” and should be avoided.

13. Put every spare dollar that you can towards your debt

Most people when buying their first home are signing up for huge 25 to 30-year mortgages. If your mortgage is a 30-year mortgage, it doesn’t mean that you have to wait that long to be debt-free. Aim to pay it off as fast as you can.

Are you prepared to stay in your full-time job, particularly if it is a job you don’t enjoy, for the next three decades until you are 60 to own your house? By adding an extra $50 a week to a $500,000 mortgage you can reduce your mortgage by over four years and save $65,000 in interest. A huge saving! You may think a measly $20 a week will not make a difference with your debt, but it will! And every small bit it further motivation to add more and more and is just the start of the debt snowball effect!

Imagine what you could do if you could add $100 a week to it in additional repayments! Break the debt cycle and avoid letting your bank or credit card provider dictate what your repayment timeline will be.

14. Save up an emergency fund of $2,000

Part of the never-ending debt cycle is attributed to not planning ahead. Suddenly your car dies on the freeway and you need to put $1,200 on the credit card for repairs. The hot water system goes and again you are stuck without a leg to stand on and putting that on the credit card.

Plan ahead. Budget emergencies are just as likely as the chance of rain. Find a way to save up $2,000 as quickly as you can and keep it in an account for emergencies only. This does not include a nice handbag that is on sale or last-minute drinks with friends. This is only for genuine emergencies like a break-in occurs and you need to change the locks or you have a severe toothache and need to get it looked at. Get organised and sell your clutter if you have to. 

If you have to use this fund, you will need to build it up again. Next time you have a flat tyre you won’t have to panic and stress about finding the money and won’t even need to think about bringing out the credit card.

15. Prepare a budget and stick to it

Knowledge is power when it comes to finances. If you are aware of what your budget is you can be more mindful of your spending and more likely to break the debt cycle. If you know you have a $500 electricity bill every quarter start budgeting for it every week. Don’t wait until the bill comes and then try and figure out where the $500 is going to come from and end up paying your bill late with an added late fee.

If you own your home, be prepared to spend regularly on maintenance. Living week to week can put you in a bind when your home needs urgent repairs and you haven’t planned ahead and put away money for such events. Check out these Everyday Savings Tips to help kick-start your budget and free up some cash to break the debt cycle!

16. Learn to be content with what you have

Once you realise how little you need to be happy the desire to consume more diminishes. You no longer feel as big of a rush buying things. The thought of parting with your hard-earned cash will make you more mindful of what you are buying.

Learn to be content with what you have. This alone can go a long way to break the debt cycle.

Do you really need a brand new $35k car on finance on your $50k salary when your current car works perfectly fine?

Are you willing to pay x dollars every month for the next 60 plus months? In good times and bad – when you are unemployed, when you are trying to live on one income when you decide to cut back hours at work to study for a new career – that debt is going to still be there. Being in debt removes opportunities.

Maybe having that spare money each week could allow you to go on an overseas holiday each year, cut back your work hours to spend more time with your family or allow you to retire earlier. Sometimes more stuff is not the answer to contentment.

17. Find new past times that don’t involve shopping

If you are finding yourself constantly browsing online shops or at the mall, you may need to pause and recognise the habit and ask yourself – is there something more valuable I could be doing with my time? How often are you shopping, for how long and how much are you spending? Keep note of it.

Gradually retrain yourself to stop the automatic habit of logging into your favourite store’s site or browsing aimlessly on your lunch break. Think about all the things you could be doing instead of shopping; reading a new book, going for a walk, meeting a friend for coffee, learning a new skill or hobby, catching up with family, or seeing a new film.

If you have friends who you shop with regularly, make a suggestion to do something different together. There are plenty of things to do that are more enjoyable (and often free) that you could be doing instead of shopping and wasting money.

18. Review your credit card statements 

In order to break the debt cycle and get your finances back on track, you need to establish where you are spending your money and wracking up debt. Check your credit card statements monthly and analyse them. When you know where you are spending your money you can become more mindful and take action to stop it. Is it at Kmart on clothing and homewares? Are you spending too much on eBay or Amazon?  Are there stores you are visiting in your breaks for something to do? Is your spending occurring on the weekend because your friends work and you don’t know what to do with your spare time?

Work out where you are spending and place yourself on a ban from going to that shop or buying from that shop online for a month. Just pick one spending problem area. If your weakness is buying makeup, avoid shopping for any new makeup for that month and see how you feel after a month. Maybe you can stretch it out for two months without too much pain. Then you can add another store to the ban list until you can retrain your mindset to shop as you need things, not as a pastime or unconscious purchase.

Do You Want to Learn How to Spend Your Money With Intention?

If you want to take control of your financial future, stop stressing about money, and learn how to spend your money with intention, book in for your free Q&A call to see how Minimise With Me Financial Coaching can help you gain clarity around your finances! 

You can learn more about Minimise With Me Financial Coaching services here

What are your debt goals? Do you have a plan in place to break the debt cycle? Are you using the debt snowball method to pay down your debt? Share your goals and wins to achieve financial freedom below 🙂