Looking to get into the market but don’t quite have your deposit ready?
In this article, we reveal the top ten tips that help our future investors accelerate their savings and kickstart their investment journey sooner:
1- Gain Transparency:
According to a recent UBank Study, 86% of adults are unaware of what their monthly expenses are, nor the money coming in. Tracking your expenditure is the key to getting control of it – a budget is useless if you can’t follow where your money’s going! The Alliancecorp Wealth Portal is a fantastic tool to provide better visibility on your spending habits, and more importantly, how to curb it.
2- Make Sure You’re Earning Interest:
Budgeting isn’t just about reducing expenditure, it’s also about making your money work harder for you. A high interest savings account is a must, with low interest rates with mainstream banks, Alliancecorp’s Income Generator service is a perfect option!
3- Increase your Income:
Ask For A Payrise!
- Use specific, recent accomplishments and highlight the value you’ve brought to the company as reasons for why you deserve the salary you’re proposing.
- Quantify your value with data and awards/accolades so you can demonstrate more tangibly how you’ve contributed to your company’s bottom line.
- Where are you today compared to 12 months ago?
- Have your duties changed? Has your role expanded? Are there more responsibilities?
- TIP: Avoid busy times when stress levels are at the highest, ensure the business is in a financial position to cater for the salary you’re proposing.
Pick Up A Side Hustle
- Take online surveys that pay cash (Toluna, Myopinions, Opinionworld, SwagBucks, SurveyJunkie, MyView – to name a few!)
- Get cash back from applications like Cash Rewards!
- Drive for transport service in your free time, such as Uber or Didi
- Rent your car out when you don’t use it (drivemycar.com.au OR carnextdoor.com.au)
- Rent out a spare bedroom
- Become a dog walker
- Deliver groceries
- Take up babysitting
- House sitting
- Pet sitting
- Sell items you no longer need or use on marketplace platforms like Facebook, eBay or GumTree
4- Review Fixed Expenses:
- Review all of your fixed expenses and ask yourself:
- Do I need Foxtel, Stan, and Netflix?
- Do I need Spotify and Audible?
- Do I make use of this gym membership?
- Is there a cheaper alternative for X?
- Can I speak with my current provider and get a discount?
5- Reduce Grocery Expenditure:
Cut back on your grocery costs by planning, batch cooking, sticking to a list when shopping and comparing costs between major retailers (i.e. Woolworths, Coles, Aldi etc). TIP: Swap brands and look for savings! This will add up over time.
6- The 50/30/20 Rule:
When formulating a savings plan, remember that of your after-tax income, roughly 50% should be spent on essential items (needs) , 30% should be spent on non-essentials (wants), and the final 20% MUST be saved or used to pay off any remaining debt.
7- Identify Your Pain Points:
Everyone has areas in which they spend more than they should be!
The first (and most important) step when it comes to budgeting is to categorise your expenditure (i.e. rent, utilities, food, etc.) and identify in which of these areas you can cut back.
8- Eliminate Bad Debt:
Cancelling credit cards you don’t need, paying off car loans and eliminating other forms of high-interest debt should be your top priority. Debt robs you of your income. Don’t cut yourself short with unnecessary interest repayments!
9- Refinance Your Mortgage:
If you already own a home, you may be spending more on repayments than you need to be. Despite an increase on the horizon, interest rates are still very low. Find out if refinancing could help you cut years of interest off your mortgage.
10- Remember Your Future Goals:
Budgeting and delaying instant gratification is healthy. Overspending and living paycheck-to-paycheck is at the cost of your own future.
Take some time out at the end of each week to remind yourself where you want to be and how you want to be living to keep you motivated on your path to financial freedom!