Times like these call for life hacks and simple savings strategies. And while physical distancing is mandatory and we need to self-isolate, there are still ways to save and reach your financial goals at home.
Whether you’re working from home, your hours have been reduced or you’re waiting for some financial aid from the government, it’s more important than ever to establish a budget and make some lifestyle changes – a few small tweaks now could save you hundreds in the months to come.
To help you get ahead, here are a few strategies to save money while you and the family stay at home.
1. Start meal prepping
This is the ultimate hack for stress-free mealtimes. The best way to meal prep is to set a few hours aside to organise, shop, chop and cook. You can prep lunches and dinners (and snacks!) for a few days or even the whole week.
Meal prepping also means you can take advantage of discounted bulk ingredients that are close to their use-by date. Simply cook then freeze for a later date. Plus, it takes away the stress of “What should I have for dinner?” as it’s already prepared – just heat (or defrost) and serve.
2. Buy your own coffee beans
Nearly every Australian starts their day with a coffee. And while a cup of takeaway coffee is a ritual for many, the cost can add up quickly.
So, with department stores and white goods shops still open, invest in a coffee machine or coffee plunger and some good quality coffee beans or pods. This will not only help you save money down the track but ensures you can still enjoy your daily caffeine hit from the safety of your own home.
3. Grow your own produce
Fresh is always best. From herbs to veggies to citrus trees, nothing tastes as good as home grown.
To help reduce your weekly grocery bill, head to your local Bunnings or gardening store and purchase some seedlings or potted herbs (remember to practice social distancing). And if you have a backyard, you could also invest in a raised garden bed and plant some winter vegetables. Gardening and potting is also a wonderful activity for kids. It gets them outside, encourages healthy eating and teaches them about the importance of nature.
4. Create a budget
A smart savings strategy is one of the best things you can do during isolation. However, the secret to a successful budget is sticking to it – no matter how much you want those new speakers.
When creating a budget, there are two main things you need to look at: income and expenses. Income is any money that you're paid or that you receive from your employer and/or government. And expenses are any outgoings. Expenses fall into two categories: everyday expenses, such as petrol and groceries; and large expenses, such as rent, mortgage repayments and utility bills.
To take your budget to the next level, keep a financial diary and write down everything you spend money on for four weeks – everything! This will help you see where you can cut costs. Also, record how much income you receive. At the end of the month, subtract your total expenses from your monthly income. The money leftover could then be invested in a high-interest savings account or an emergency fund.
5. Keep your eyes peeled for sales
Thanks to the world of online, a good sale is only ever a click away. So, to help you stick to your savings strategy, only buy things that are on sale – and that you actually need. Whether it’s a new winter jacket, bedding or a laptop, spend a little time researching to find the best deals.
6. Start Buck–et budgeting
Buck–et budgeting is basically a modern-day version of envelope budgeting. Rather than having all your funds in one big pile, which makes it way too easy to spend, budgeting with your everyday transaction account cards separates your finances and gives you a clearer view of your savings and spending.
The beauty of this system is that you can have as many Buck-ets as you like (for example rent, bills, groceries, holiday and home deposit). This prevents you from impulse buying or splurging as you can only spend what’s in others.
If you are interested in this style of budgeting we have a blog post here where you can find out all the details.
7. Set up an Online Savings Account
If you don’t have a dedicated savings account, now is the time to do it – like right now. Not only can you earn bonus interest, you’re also less likely to spend your savings as they’re safely stashed away.
There is a range of different savings accounts to choose from depending on your lifestyle and financial situation, too. An online savings account could help fatten up the kitty or if you already have some funds saved, investing them in a term deposit guarantees you a fixed rate without having to do a thing.
8. Stash the small stuff
While you work from home and self-isolate, you’ll naturally find some costs will reduce. If you drive, a full tank of petrol should last longer. And if you relied on public transport, your weekly or monthly pass may be put on pause. So, instead of spending this money, save it. Whether it’s $10 a week or $50, it all adds up and can help you reach your savings goals.
And with no expensive nights out on the cocktails or at the city’s hotspot restaurant, cash should naturally free itself up. And when things go back to normal, you might be able to keep a few of these good habits in place.
Life on the ‘inside’ doesn’t mean you can’t save. By making a few small lifestyle changes and embracing your inner green thumb, you can still reach your financial goals even if it takes a little longer.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.