Stretch your salary to breaking point

September 13th, 2009

Are you managing to save something every month?

I got paid last week and for a brief moment I felt rich. I took a walk through the mall and eyed a new pair of jeans and a couple of shirts I don’t need. I cruised through the department store fingering the goods. I had a cup of designer coffee and looked at the idle rich beyond money problems. Then reality set in. A few days later my bank account looks much the same as it did before my salary was deposited. There are ways to plug the leaking cash hole, live a little cheaper and put a little of one’s salary into a savings account. One of the recommended methods is to keep three months’ salary in an instant access savings account to act as a cash cushion.

Tips for changing your lifestyle

According to one expert, if you give up on a few luxuries each month, you could save yourself over $5,000 each year. Take a look at the following:

• Quit smoking.
• Cancel gym membership.
• Cut out morning latte.
• Cut out one takeaway per week.
• Drink two less pints of beer per week.
• Swap a liter of bottled water for tap water.

Depressing, isn’t it?

Alternative savings

Saving money doesn’t only have to involve sacrificing the things you love. Here are some tips to help you boost your savings another way:

Chop your food bill

In the supermarket forego food-brands you know and go for the supermarket’s own label products – you will save money. Check out budget supermarkets as these are generally cheaper than the big supermarkets. Buy only what’s on your list! Haggle

Haggle

. When you’re purchasing a particular item try and haggle the price down. Or ask if you can get some freebies. Many retailers are desperate for custom so you might be surprised how far you can push it! I tried out my haggling skills just last week when I successfully renegotiated by a new mobile phone contract by simply stating how much I was prepared to pay. And I got my request without even having to threaten to go elsewhere! This is my third phone deal and cheapest so far.

Take up the offers

Fancy earning $100 just for opening a new account? Well, that’s exactly what you can do if you take up the bait that some of the new banks and businesses use in their fishing for new customers.

Where to put your spare cash

Hopefully by following the above tips, you’ll be able to put aside some extra cash each month. Where will you put it? The challenge is to find a bank or savings bank that pays of interest. Even if you can only afford to put away a spare $30 or $40 each month, it all adds up. And knowing you’re building up a safety net to protect your future is worth the effort.

This entry was posted on Sunday, September 13th, 2009 at 7:37 pm and is filed under Economy, Employment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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