Where’s my money?

In the coming days, many of you will receive your PAYG payment summary from your employer. If you’re anything like me (and I pray you’re not) you will look at it and think where did all my money go?

My first thought was, that can’t be right, I didn’t earn that much, but what I really meant was, how did I spend that much in one year? After perusing my bank account, I realised I’m living that Kim Kardashian lifestyle, minus the followers, freebies and money. My bank account is less bank account more food journal, keeping a record of the various cafe’s around Adelaide that I visit on a weekly basis.

  • Food, Coffee, Food, Coffee, Gym Membership, Food, Petrol…oh did I mention Coffee?

As the financial year ticked over from 30 June to 1 July (Happy EOFY to those who celebrate), I thought it was about time I re-evaluated my saving habits, so where did I start, by cutting out coffee and smashed avo? No chance, every millennial knows they are the foundation of the food pyramid.

In order to get my financial affairs in order I decided to turn to the messiah, the all-knowing David “Kochie” Koch. Unfortunately, he wanted $99 to help me out, that works out to be about 5 brunches, and that’s just too big a burden to bare.

So, I did my research, and found that 43% of Australians aren’t savers, of the remaining 57% who claim to be savers, only 16% stated they are saving easily, whilst the remainder are only saving a little.

Now I’m not here to tell you to cut out your daily coffee or drinks on a Friday night, but I thought I’d pass on a few tips and tricks to help you save money without feeling as though you’re going cold turkey.

  1. Spending assessment – How much do you spend?
    Go through your bank account and work out what you spend on an average week/fortnight/month. e.g. rent, gym membership, phone bill, insurance.
    Separate your regular necessary expenses (needs) from your luxury expenses (wants) e.g. coffee, drinks, shoes. Once you’ve got a gauge of your expenses, you can set yourself a realistic savings goal. Don’t try to over-commit to saving, by going too hard too soon.
  2. 50-30-20, keeping it 100 
    The most common guideline is the 50-30-20 guide, it works as follows:
    50% of your income should go towards your essential expenses, rent/mortgage payment, and groceries.
    30% is to treat yourself, clothes, dinners, coffee…brunch anyone?
    20% of your income should go directly into your savings.
    The above is only a guideline, not a hard and fast rule, rejig the percentages to best suit your personal circumstance, just be sure to make sure your savings goal is attainable and doesn’t dramatically impact your lifestyle.
  3. Out of sight out of mind
    Regardless of what percentage breakdown works best for you, if you separate your savings from your everyday money, it will make it harder for you to dip into your savings. You might also want to setup a direct deposit of your salary into various bank accounts for those reoccurring expenses like rent and insurance so you never get caught out. Finally, if you setup a savings account (with no account fees) with another bank, it will make it harder for you to transfer money from your savings account when it’s your turn to buy a round.

When it comes to saving remember, do what is best for you and your personal circumstance. Having an attainable goal or target will make saving that much easier and rewarding.

Lastly, I do not attest to be a financial guru, and I’m definitely not a financial adviser, I am just providing some general educational information which I thought could be of use to you.

Stimulating the economy one coffee at a time,

YG

 

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