Make your dollars go further

By the resi financial blog team, 22 July 2014

How do I save money

Despite record low interest rates, there are still many single borrowers looking to make their dollars go further – and the reality for a sole breadwinner is that there are three ways to do that:

  • Increase your income
  • Cut spending; or
  • A combination of both

Consider the following tips:

Income
Taking in a tenant can help boost your income through rent, as well as sharing the costs of running your property. If your property has good rental potential, consider renting the property out and moving back in with family if that’s an option.

Take on an additional job to supplement your income, or consider whether you can change jobs to one that pays you more, particularly if you feel you are currently being under-valued financially.

Spending and Cashflow
Revise all areas of discretionary spending by writing down a detailed log of everything you currently spend over the quarter. Identify what you can do without, and then draw up a realistic budget which sets limits on what you should be spending.

Revise your holiday plans. Consider a ‘staycation’ as an option to allow you holiday time at home, where you may be able to also carry out odd jobs on your property if it needs some maintenance work.

Eliminate multiple credit cards and reduce existing card limits. You should then aim to pay off or reduce any form of high interest credit. Get smarter about when and where you purchase your food and petrol.

Furthermore, scrutinise your utility bills and work out how you can reduce your phone, gas and electricity usage. Consider changing the way you are paid so that your cash flow improves and allows you to manage your household income more simply.

Can you alter the structure of your mortgage? You can save interest by making fortnightly payments instead of monthly, thereby making more payments over the year. To find out more about your home loan options, give us a call on 136 126

Categories: How to save, Money Saving Ideas