The world has been thrown into economic uncertainty by the COVID-19 pandemic this year. Job losses and a general lack of consumer confidence make this an ideal time to actively seek out ways to make savings on your everyday expenses.
Maybe you need a little extra cash now? Or perhaps you are keen to save for a rainy day? Either way, these top money-saving tips will help you get ahead.
1. Hibernate as much as possible during this time
Staying home whenever practical is not only a good strategy to keep you Covid-safe, it can also be a significant money saver too.
That evening out for dinner and drinks with friends? Change plans, prepare a home-cooked meal, pour a glass of wine and catch up over Facetime or web video chat.
2. Get reminded about upcoming contract renewals and bills
Download the free GetReminded app (from the Apple or Play Store) and be prompted to renew your contracts and pay bills on time. Avoid late fees and take the opportunity to shop around for the best deal at the time your contracts are due for renewal. Get reminded when it matters and potentially save hundreds or even thousands of dollars a year on your everyday expenses.
3. Shop around for the best deal
On-going expenses like your insurance, mortgage, mobile phone and internet contracts add up, and when combined represent a significant proportion of household income allocation.
The team at Sorted in their Spoilt for Choice article suggest you do your research before you sign up for a financial product like a credit card or loan.
“See all your options. Gather information on more than one product so you can make the best choice for your situation. Ideally you want to get a view of the entire market to see what’s on offer.”
4. Remember, everything is negotiable
As the consumer, you decide which businesses you enter into contracts with. It’s good to remember that you have the right to negotiate and often it may be as simple as asking the question, “Is that your best price?”
The NZ Government suggests when you negotiate with a preferred supplier you “test the understandings and assumptions that have influenced a supplier or provider in preparing their offer. Get the best value for money by working together to refine or enhance the proposal.”
5. Set up a separate savings account
Out of sight, out of mind. Set up a separate savings account, with regular direct deposits and you may be surprised how quickly your savings balance increases.
ASB suggests that you “make it personal” by naming your savings account to reflect your savings goal. “Name your account so you can visualise your goal and stay focused.”
You can also potentially accumulate interest on money kept in savings accounts. Cents add up to dollars.
6. Set a savings goal and save with purpose
That new laptop, the annual family week away at the beach, school fees or the emergency fund safety net….whatever you are saving for, having a goal and a clear reason to save helps you achieve more.
“Your savings goals help you define what’s important to you. When you know your priorities, saving money is no longer a sacrifice. It’s a matter of setting priorities. It’s a matter of deciding what you want more. It’s making a choice not a sacrifice,” said Tip Yourself’s Mike Lenz.
Disclaimer: This information is meant as a guide only and should not be taken as legal or financial advice.