I have a very successful family member…who started out as a carpet cleaner and now is an entrepreneur. I asked him for some savings tips and they said one thing they did was they micro managed their budgeting , which BNZ is perfect for …as you can open numerous accounts. I have done this but I thought that when my pay came in that I could auto arrange my money in to each budgeted account, one set up time only. Great to have the accounts, but I was really disappointed to find each pay month it was a major job for me to allocate so many funds. I gave up and am back to divvying out from you money, only budgeting basics.
I use a combination approach. I have a spreadsheet, with tabs for each month. I know exactly what my monthly fixed costs are (Rent, Fix bills, Spotify, Bank Fees, Mobile Insurance, Mobile bill and my monthly bus/train pass). I then list my savings. The left over is what I have to spend.
When I get paid, I move the fixed bills amount and the savings amount straight out to another bank account. From there, I have APs set up to sort everything out without having to think about it.
I then use what’s left during the month (I’m paid monthly). It’s really good to also look at what % you are using to spend/save/pay bills.
When I took a long hard look at my monthly fixed costs, I realised that I was spending nearly 45% of my monthly pay on fixed bills - mainly my rent was a lot and so were my bills. Although I loved my flat, I decided to move and downsize (I live in a houseshare). In the end, I was able to save $600/month by simply moving flat. Not only did I save on my rent and my bills were cheaper, but I also moved to a better location for getting to work which saved me travel time as well as a cheaper fare.
I think it’s all about priorities. Do you need to live in a really nice flay while you save for a house? Do you need a room with an ensuite? For me, the answer is no - I want to have a house deposit in 2 years time.
Now I am able to save 40% of my pay each month and only 29% of my income goes to fixed bills. I am slightly stretched each month with my spending money, but I think it’s a good thing as it really helps you think about each little thing you spend (and when I get to the end of the month and I have no money, I really regret spending that $40 on beauty products I probably didn’t need).
I’ve started to use the app ‘Daily Budget’ (it’s an app with a yellow pig money box on it). It’s really handy for tracking what you’re spending and how much you’ve got each day. i.e. If I put in that I have $1000 to spend over the month, it will split it by day. So if you overspend one day it will adjust the next 2 days to take that into account - so you can see that you need to cut back spending.
Long post, I know - but I also have another tab in the spreadsheet which is called ‘savings’. It’s a list of all the deposits I will make (one each month) and shows the total. I have an end goal of November 2016, so I can see that at that point I will have a house deposit if I stick to my guns. It really helps me stay focused.
Hi @Needorwant , great tip. Did you know you can set up automatic payments to go into each of the different accounts each pay? I do this, I know that my pay comes in on a Wednesday so I have an automatic payment that night to transfer different amounts into the various accounts i.e. rent, travel, in case of emergency etc. You can set this up to be happen automatically every month in YouMoney to match your pay cycle. Just go to Pay or Transfer and expand the date and statement details section and choose how often you want it to repeat.
I set up two automatic payments; one goes to an everyday savings account and the other goes to a serious savings account I can’t touch.
You hardly recognise it goes out!