It can be surprisingly easy to break the budget on small items. But one way to realise how much this can impact your bottom line budget in a year is to apply the times 50 rule. Just think of an item you spend money on every single week, let’s say it’s a magazine. So that’s about $8 a week from your purse – doesn’t sound too much. But if you times that by 50 then you realise you’re actually spending $400 a year on magazines. For coffees, that’s $3.50 a day, or about $17.50 a week – which adds up to $875 in a year. It’s a different way to think about your spending.
The key is really to think up some ideas that are fun and creative so you can keep up your motivation and stick to the plan. Have a brain storm with your friends for ways to keep costs down in an enjoyable way.
Once you’ve worked out how much you are saving you can then put that money away into a high interest savings account.
Times 50 Examples
5 coffees a week, $3.50 each = $17.50 week
Annual spend: X 50=$875 a year
Saving Tip: Make good quality percolator coffee at home
Magazine $8 a week
Annual spend: X 50=$400 a year
Saving Tip: Pool subscriptions with friends and share them around
2 bottles of wine a week, $15 each = $30 week
Annual spend: X 50=$1500 a year
Saving Tip: Buy at online auctions by the case
3 bakery treats each week, $6 each = $18 week
Annual spend: X 50=$900 a year
Saving Tip: Cook up some home batches of healthy treats
Clothes, $100 a week
Annual spend : X 50=$5000 a year
Saving Tip: Hunt down the sales or run a clothes swap
5 yoghurt and muesli bars for one school lunch box each week, $6 = $30 week
Annual spend: X 50=$1500 a year
Saving Tip: Buy in bulk or make weekly batches of home-made treats
Some great websites to help you find bargains:
Clothes sales: www.missyconfidential.com.au
Clothes swaps: www.swapmystyle.com.au
Magazine subscriptions: www.isubscribe.com.au or www.magshop.com.au
Wine: www.graysonline.com.au
Mobile bills: www.phonechoice.com.au
Travel: www.holidaygoddess.com
Shopping at Farmers’ Markets: www.farmersmarkets.org.au
Compare bank fees: www.mozo.com.au
Savings tips: www.simplesavings.com.au
Get creative with $5: www.fiverr.com
Free events in Sydney: http://www.theage.com.au/lifestyle/dollars-and-sense/the-best-things-in-life-are-free-sydney-20100219-okhn.html
Free events in Melbourne: http://www.theage.com.au/lifestyle/dollars-and-sense/the-best-things-in-life-are-free-melbourne-20100219-oklv.html
Anneli Knight is the director of the 10ThousandGirl Campaign: www.10thousandgirl.com
