Whether you're saving money to travel or for other big life plans, there are a heap of shonky tips out there. Reuse your tea bags? No thanks. Give up your daily latte? Never.
These are five tips that have worked for me.
- Have your entire pay deposited straight into your savings then take out the bare minimum you need for living. Make sure your savings are hard to access (but not too hard, just in an account that needs an overnight transfer). That way, if you see shoes, books, power tools, whatever that you MUST have, right now, you are forced to have an overnight cooling off period. If you have to make the effort to get money and go back to the shop, most things loss their attraction.
- Credit cards are evil and should never be used. Sure you might have an emergency. So, suck it up. People dealt with emergencies before credit cards. If you don't understand compound interest, you should never be issued a credit card. There should be a compulsory test. If you do understand compound interest, you probably don't want one.
- Buy now, pay later - if you fall for that shit, go slap yourself. You don't need it.
- You don't need new shoes. I can't believe I said that but if you buy into this whole girlie-girl let's giggle and buy expensive shoes and drink cosmopolitans that's perpetuated by crap like Sex and the City you will never have any money. Unless you marry rich. Then he'll leave you for someone younger and prettier one day and you will still be screwed.
- Most of what you buy is crap. You don't need it. Stop using shopping as a hobby and go home and play with the crap you already have.