There could be a number of reasons why you’re struggling or simply can’t save money. So, let’s unpack a few common issues and turn them into money-saving opportunities.
SOLUTION: Find a budgeting structure that works for you.
For some, budgeting is a pretty inherent life skill. For others, it’s a wacky talent that eludes them and it can often be the root cause of several financial dramas.
You may be running into savings struggles because you have more money going out than you have coming in. It’s not just big-ticket costs like rent and energy bills, it’s also your sometimes-used Netflix subscription, coffee and dinners out, everyday essentials—the list goes on and on.
To get started, sit down and spend an afternoon sorting through a month’s worth of your transactions (either a fancy app or pen and paper will work) and you might be amazed at how quickly things come together.
SOLUTION: Put. It. Away.
Having all your money in one bank account is the first issue. When your paycheck falls in one big lump sum into that main account, chances are you’ll spend it on impulse purchases, making it really hard to save money.
But you can’t spend money that’s not there… right? Most banks will let you set up automatic transfers between different accounts. For example, every fortnight, set up an automation to take $100 from your main account have it transferred it to your ‘emergency fund’.
The key here is not to outspend your salary. So, save money by having it automatically deducted and then, whatever you do, don’t touch it.
Top tip: You can set up automated transfers with RentPay’s bill smoothing feature. Instead of making large lump-sum payments, each payday you can pay smaller, manageable amounts towards your bills, rent and/or credit payments.
SOLUTION: Treat all incoming money the same (yep, even windfalls).
If you’re lucky, you might be in for a nice tax refund this new financial year. Perhaps you sell an item or two on Facebook Marketplace or you receive payment for a freelance gig.
This feels like ‘extra money’ and if you’re like some people, you may immediately think it’s okay to blow that on something impulsive. We get it. The temptation’s a real thing—but the right move would be for you to drop it straight into your savings account. This is especially important if you’re trying to pay off your credit card debt.
Don’t allow yourself to think of it as windfall money as spending money. It’s actually a great opportunity to top up your savings balance and reach your goals faster.
SOLUTION: Visualise a goal and work towards it—or make a game of it!
If the biggest challenge for you right now is getting the motivation to sock away a reasonable amount for financial security, start by visualising what those savings will earn you down the track when that nest egg comes into its own. The alternative is to visualise what might happen if you don’t have savings in place!
If saving towards a large goal feels too daunting, start by saving for something smaller and easier to achieve. Maybe you just want a new dinner set or to upgrade your phone at the end of the year. Get your confidence up through achieving smaller goals, so you can set bigger financial targets.
For people you enjoy a challenge, gamifying your savings could be a smart strategy. You could use something visual, like a scoreboard to track your progress, or even allow yourself an inexpensive treat to reward positive behaviour.
SOLUTION: Audit your subscription payments (and cut them in half).
Don’t get us wrong, subscriptions can be great. We’d be lost without Spotify and Netflix, and if used correctly, some subscriptions can actually save you a heap of money or at least enrich your life and downtime.
However, by the time you’ve weighed up your music streaming, health and fitness programs, magazine subscription and meal box delivery—the reality is that your bank account is taking a huge hit each month. If you forget to cancel these, you’ll still get charged and that’s money down the drain.
Check out your transaction history and decide if there’s anything in there you no longer use or fully need right now. Then find a very large budgetary guillotine and cut that list right now!
SOLUTION: Remember that saving money is a marathon, not a sprint.
There’s no right or wrong way to think about money because we all have wildly different relationships with it. It’s something that will vary depending upon your circumstances and also how you were raised.
The important thing to remember if you want to become a better saver is that you need to maintain it. Getting into the right frame of mind with your newly discovered good financial habits will help carry you through on that journey.
Remember the reason you wanted to be better at saving in the first place. Don’t go to the extreme and start living without spending money. Unrealistic targets rarely drive results—slow and steady is the way to go. If you have a money windfall, treat yourself but keep on track with your objectives.
And finally, don’t beat yourself up if you lose your way. Small steps can make all the difference! Good luck!
You might also like:
> Save money with Paylab shopping rewards
> How to save money on groceries and everyday purchases
> How to invest in yourself without spending a cent
