Bright Ideas To Manage Your Money

If you keep finding yourself short of cash before payday, chances are it’s time to try a new way of budgeting. Managing money is one of the trickiest things we have to do. Here are 17 bright ideas to help you better afford the things you want:

Draw Up A New Household Budget

Download a template and fill in all the figures you can. Check recent bills, receipts, and bank statements to help you fill in the blanks.

Reduce Your Energy Bills

This is often one of the easiest ways to spend a little less every month. If you have solar panels, try to do all your vacuuming or use the washer and dryer during the day. The energy will be free! Monitor your usage and try to cut back wherever you can. You can also change providers to save money. 

Quit Those Bad Habits

Spending your cash on things you shouldn’t buy can be part of the problem when you struggle to manage your money. Try to avoid buying wants instead of needs.

Borrow Sensibly

If you know you sometimes need flexibility in your repayments, then choose flexible lenders that might be able to grant a month off or faster repayments. Find a better rate with a different lender. Take the loan out for a longer period to minimise repayments. 

Pay In Cash

It’s easy to lose sight of spending with a credit or debit card. If you’re worried you might spend more than you can afford, pay with cash, so you know how much you have.

Pre-payment Card

If you don’t like carrying cash around, then try a pre-payment card instead. They work like debit cards in the store, but only give you the funds you’ve already applied to the card.

Savings

If you save every month, then you will always have cash available for that emergency or major purchase or holiday.

The Future

Do you have superannuation in place? Will there be enough to retire on? Should you be contributing yourself? Do you have life or income protection? Start to arrange your financial future.

Know Where It Goes

Try producing a pie chart that shows you where your money tends to be spent. This can help you make more informed choices about your next pay packet.

Aim Higher

When was the last time you got a promotion? More responsibility often comes with a higher income and better benefits. Ask your boss for more.

Aim Smaller

Choose a smaller car or a smaller house. Saving on fuel, insurance, rent or mortgage, and water can help you save money.

Use Different Savings Accounts

Some savings accounts are high-interest, but you have to leave your cash in there for ages. Others are instant access but offer little reward. Make sure you’re using the right one for your needs.

Replace

Only buy fashion when your clothes need to be replaced. This saves space as well as cash.

Home-cooked

It’s difficult to budget a night out. You can save a lot of money with cooking at home. In fact, when we first bought our house and had a young family, we rarely had take away. It was a treat maybe once a month and it would be for something like pizza or fish and chips. If you do want take away food, never ever get it via a food delivery app. You get double stung with food that is more expensive than ordering your meal through the store/restaurant/ cafe AND you pay a delivery fee. For example

Shop Around

Get more for your money by finding the cheapest store for your goods. For our grocery shopping, I usually do a quick look online to see if any of our regular purchases are on special and purchase where they are. For instance, today I bought a large jar of Moccona coffee at Coles at 40% off and Omo laundry liquid at Woolworths was half price. Doing this, I saved $27.50, just on those two products. Buying clearance items is always a good way to save money. If we see meat on special, we either plan to have it that week or leave it in the freezer for the future. 

As for other goods, such as clothing, take advantage of sales and clearances. My husband picked up Adidas and Puma workout tshirts and shorts at Myer for $20 and $30 each last weekend. I bought a new handbag and purse at Strand for 40% off and Tommy Hilfiger boots for winter, that were over $200 originally, for $79 on Ozsale. Quality pieces always last longer and only purchase what you need. You’d be surprised how much money you waste on clothing or accessories that are sitting in your wardrobe not being used.

Invest Wisely

Some investments yield great returns. Others are nothing more than scams. Pick reputation over return.

Other Ways To Earn

Make sure you have a backup plan if something goes wrong at work. Emergency funds, 2nd jobs, or frugality plans can help here.