Hi everyone! I’m curious to know - what’s the best piece of advice you ever got about saving? And did it work for you?
Best piece of advise? I was told to put your savings away so you cant touch it. This is excellent for someone like myself who finds it terribly hard to save. I have my savings account joint with my partner so that we both have to agree to take money out! Perfect. I have it linked up to my Internet Banking aswell so I can see the balance grow, but I cant easily get to the funds
When I was saving for my house deposit, I made heaps of small changes to how I spent my money. So, instead of buying my lunch, I took something from home, and I didn’t buy takeaway coffees every day. I calculated what I was saving daily and put that money into my RapidSave house deposit account at the end of each week - I managed to save about $400 in a month! Stoked!
I am like Krystal get me a savings account that makes it painfull to withdraw funds against. At the same time give me that account where I get bonus interest if my balance goes up. I use a seperate savings account for my rainy day savings and if i dip into that I am all good, no penalty and I expect this account to fluctuate.
My and my partner have gone from living on student allowance, to saving everything we earn except for what we would have got from student allowance. We put the extra into a savings account that we both have to sign withdrawals off on. I think it all depends on where you’re prepared to make sacrifices for saving. Because we’re used to living on a student budget, the transition has been relatively easy with little sacrifice of lifestyle. I guess my recommendation is, any additional income you earn, or money you come into, just put it aside, because otherwise it will just get swallowed up. You managed to get by on your current inflows before so you should be able to continue doing so.
My husband and I are saving up for a house at this moment, which demands us to make a lot of changes to our lifestyle. Little things like getting your own luch, ditching takeaway coffees really work.The other things that worked for us to be really proactive and look for other areas where we can save money, like switching power companies, make sure bank accounts, cards etc all up to date so we don’t end up paying any fees, interest etc. Every bit helps. The thing that worked best for us is trying to live on 1 person’s income and try save the entire of the other income each fortnight.
The general themes I have picked up so far are;
Place your savings in an account with restricted access/controlled access,
Tighten-up on the ‘little things’.
Both being great pieces of advice which can certainly help achieve the right result.
As for my own experiences, I prefer to have all of my funds available, although I am disciplined enough not to touch it. However, I appreciate that the ‘more restrictive’ accounts do generally offer better rates of interest. Each to their own, I suppose!
First and foremost - make a budget, but make a budget that’s realistic for your circumstances and something that you’re happy to save/spend to. Once you’ve made a budget, the whole process becomes much easier IMHO.
During a recent saving period, I was able to save 2/3 of my income - that was a one-off though. Typically, I am able to save about 1/2.
Mlyglied - what an awesome post! Based on my experience budgetting is the best, sometimes it makes it easier once you see everything in front of you. Along with prioritising, thinking about what you need as opposed to what you want. I saved a lot by sacrificing my morning coffee The thing to remember is money goes in and money goes out. It’s our responsibility to dictate how much stays in.
I’ve managed to really knuckle down on savings in the last year, by eliminating frivolous spending (no takeaway coffees, no taxis, buying GrabOne deals…). I get paid monthly so in order to save, I have to be conscious of what I need to live off and not just hope that there’s something left to Save in the ol’ cheque account at the end of the month!
I use a combination of the sorted.org.nz budgeting calculator and YouMoney to control my spending. I put aside enough in accounts like ‘Car’ and ‘Medical’ and ‘Christmas’ to ensure I never get slammed with a surprise bill, and I have multiple savings accounts for different goals, as well as one major Savings account with high penalties.
Rebecca153: No problem. It wasn’t until I actually wrote my spending down, at which point I could see where most of my money was going. The biggest spend was food.
Whilst I would regard rent/mortgage as my largest outgoing, it’s pretty much a given and not something you can easily reduce (depending on your circumstances). It does, however, form part of ones budget. Food was by far the easiest item to reduce spending on; i.e. $5 coffee per weekday = $25 = $100 per month!!
RC: There are some great online services available. I personally use YouMoney, however I believe it’s graphing/in-out displays could be improved.
Hi Yvonne… my biggest peice of advice is to have a VISION for what you are saving for. If your vision is just to save for the sake of saving, I think the motivation to make sacrifices (such as not buying that morning coffee) quickly loses appeal. But if you have a vision of what you are saving for and keep that vision front of mind, we are much more willing and likely to make the necessary changes to our lifestyle in order to see that vision materialise. Its about putting the ‘why’ before the ‘how’.
So what’s your VISION?..A house? A new car? Financial freedom in retirement? A 5 star holiday?
I totally agree with Mlyglied. Once you actually look at your statements, you can see where the big spends are. We’re trying to buy a house at the moment, so looking to save wherever we can, but we’re loathed to drastically alter the lifestyle we’ve come to enjoy. Breaking down our spends into type, and then deep diving into the big ones, gave us a much better idea of where we could change some habits to make some big savings. Things like moving down a brand at the supermarket, e.g. from the finest organic, to a standard brand, to a value brand, etc. I’ve become well acquainted with PaknSave, rather than Countdown/New World. It was a shock to see how much went on filling up the car, so we looked at buying a smaller one, and taking things like the heavy pram etc out, to reduce the weight. A massive winter cost in heating, especially in our poorly insulated bungalow. We ended up wearing our ski pants in the evening, and invested in an extra water bottle or two for night time!
We still love to go away for the odd weekend, and love to explore, but have found it’s so much more affordable going with friends. It spreads the cost of accommodation, food, entertainment etc. You just have to find a group you’re willing to spend a few days with - it can get pretty cozy
@Rebecca153; like your thought about what goes in / out. For me, saving is about being conscious. A few years ago my wife and I were possibly heading overseas. It turned into a long drawn out process which eventually fell-over but during the months of negotiations, we started to think differently about our house as we didnt know if we would be about to put everything into storage for a few years. This meant we asked ourselves, do we need to buy that vase, do we really need to change those curtains etc. We retrained our brains to start thinking need and not want. Its become a powerful thought in my brain - do I really need a new pair of trainers, or do i just want them? its amazing how much money you stop spending, and then become more conscious of the times you do spend out of ‘want’, which feels better as it feels more earnt.
I can’t give tips on saving as I am so bad at it! I know where I am going wrong, I have absolutely no willpower and find it difficult to stick to a budget. I think I would seriously love to have a “Personal Money Coach” to help me get started and see just where I am going wrong!
red_rav, I know EXACTLY where you’re coming from! When my willpower fails me, I turn to automatic payments. If you get paid on a regular basis and a regular amount, have the money go out as soon as it goes in. One handy thing that happens in the banking system is that if you get paid overnight, our systems work in such a way that if you have AP’s/DD’s etc going out the same night your pay goes in, you don’t go into unarranged overdraft. So for me, my pay goes in, and the very same night, my rent, insurances, and bills all go out.
Another thing I like to do is challenge myself to hit a certain saving threshold by a certain time; it’s a great motivator to drop an extra few dollars into your savings account on top of your regular AP, and it makes you feel great.
As for the personal money coach, sorted.org.nz is a good place to start, or possibly the Citizen’s Advice Bureau, who are also able to help with budgeting.
At the end of each day, put your coin from your purse into a jar. When the jar is full deposit the funds. It is amazing how quickly the jar fills up.
Here’s one of the oldest savings tips in the book. Put an outline of the image that you want. Break the cost into 4 $$$ and draw 4 lines across it so you can colour the space in when you hit the 1/4 stage goal. Pop it on the wall, the fridge or even better as your screensaver !!! Visual reminder is an amazing motivator to reach your goals . Get saving NZ !!!
use internet banking to monitor money coming in and out of your accounts daily, pay bills as you receive them and transfer money into a rapid save account each pay check to take advantage or bonus interest rates. Have a simple budget that is the same period of time as your pay cycle and update every week to account for variable expenses so you know how much you can save from each pay.
I like to round down the balance of my spending account daily to the nearest ‘nice’ looking number by transferring the extra dollars into a savings account, e.g. If I have $237 in my spending account at the end of the day I will transfer $7 into my savings or $17 depending on how close I am to my next pay check, few dollars a day can really add up and it satisfies my OCD tendencies
We do this too