Reducing your spending doesn’t always mean that you aren’t saving enough or that you are overspending, it is about understanding your inflows and outflows. Understanding your money is the foundation of having solid financial independence.
So, let’s slash those unnecessary expenses and start putting your funds towards things that are really important to you. Whether that is your home, kids, holidays or whatever things are on your bucket list. A few dollars here and there can really add up and small changes don’t have to mean a massive shift in your lifestyle.
I have listed out a few challenges that we have implemented for a Pursue Wealth member (30yo fun, vibrant, single, female) and the annual savings that she now has. This simple exercise can keep your eyes on the prize. Check out what she is doing with her savings below…
The challenge…
| CHALLENGE | Previous $ | New $ | Annual savings |
| Shopping once a week with planned meals rather than going to the shops 3 times and buying unnecessarily Impulse shopping, or shopping when hungry are recipes for overspending | $150 weekly
$50 three times a week |
$100 weekly | $2,600 |
| Buying movie tickets through providers, Telstra, AIA Vitality, Optus rather than paying full price Don’t forget to take your own snacks 😛 | $50 monthly
2 tickets |
$26 monthly
2 tickets |
$288 |
| Buy wine in bulk invite friends over rather than go out. Virgin wines anyone? Seems like Christmas in a box. | $240 quarterly
12 bottles |
$160 quarterly
12 bottles |
$320 |
| Shop homewares at Kmart. Mixing inexpensive pieces with more expensive statement furniture allows you to update more frequently and makes it all seem high quality. I often say my home is the love child of Nick Scali and Kmart! | $1,000 annually | $750 annually | $250 |
| Fill up your drink bottle, do not buy bottled water. We live in Australia, there is seriously no need to buy bottled water. If you must, I’m going to shout out to Thankyou water for giving back whilst doing it. | $9 weekly
2 bottles |
$0
Unlimited |
$468 |
| Grow your own herbs. Calling all green thumbs. | $6 fortnightly
2 bunches |
$40 annually
Planter box and seedlings |
$116 |
| Buying coffee is a #treatyoself moment rather than a daily routine. While this is an oldie it is such a goodie. | $22.50 weekly
5 coffees |
$9 weekly
2 coffees |
$702 |
| Take a packed lunch instead of buying lunch. Another example of a treat not a habit. | $75 weekly
Lunch out daily |
$35 weekly
1 lunch out weekly + packed lunches |
$2,080 |
| Finding a gym membership that you’ll actually use. Hands up those who have a gym membership they hardly use. Swapping to a 24-hour gym with classes may help you out. | $50 weekly | $16 weekly | $1,768 |
| Make the most of Happy Hour We get it, no one wants to be a hermit. So when heading out, check out. www.thehappiesthour.com | $27 weekly
3 glasses of wine |
$15 weekly
3 glasses of wine |
$624 |
| TOTAL SAVINGS | $9,216 |
The outcome…
I hear what you are thinking… what did our gorgeous client do with her $9,000 of savings? Well with the guidance of her adviser, yours truly, we have managed to invest $5,000 of this in shares towards a deposit on her first home and increase her holiday spending so she is now heading to Italy to escape Melbourne winter instead of her original plan to head to Bali.
Was it worth it?
She certainly thinks so!
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