To save money you need to be spending less then what you earn and according to ASIC’s Money Smart Guide over 50% of Australians are saving towards a house, car or a holiday. But could they be saving more?
There are many ways to save, but did you know that your food habits can be an important and often overlooked way to find yourself a significant amount of savings. We’ve added up the savings you can expect from some common food habits and found some ideas to potentially put thousands back in your pocket each year.
Re-think your vice
1. Your morning coffee. We know you’ve heard it before, but this small daily expense seriously adds up. Say your daily coffee is $4.00, 5 days a week. Over 260 days a year this will cost you $1,040. If you drink 2 coffees per day that’s over $2,000 per year! Simply cutting back or utilising cheaper ways to get your caffeine hit really add up. If you have coffee facilities at work, wait until you get to work to have your first coffee, that way it’s completely free. Or, consider purchasing your own coffee machine. If you are saving over $1,000 a year on take away coffee, a few hundred dollars spent on a coffee machine will still put you ahead now and in the future.
2. Your lunch habits. While we all know that bringing your own lunch can save you money, sometimes it’s not until you sit down and work out the savings that it gets really sobering. If you spend $10 each week day for lunch, it will cost you $2,600 per year. Plus, if you add a bottle of water or soft drink for $3.50, that’s another $910. Bringing your lunch from home and even cooking in bulk and freezing in advance can reduce your per meal cost significantly. By reducing your average meal cost to $4 instead of $13.50, you’d save $2,470 per year.
3. Snack time. Whether it’s a muffin, a chocolate bar or an extra drink, if this is something you tend to do most days, then one $3 snack or extra drink each weekday can add up to $780 a year. Try bringing snacks from home to have on hand or ditching the habit altogether.
The total potential savings for the year is $4,290 – an average of $357 a month. If you are a couple and you both take on board this challenge, your savings would be $8,580!
What to do with your money saved
Instead of spending the $357 a month that you are now saving, put it in to a high-interest savings account instead of an everyday bank account. By putting your savings in a high interest savings account, each month for 12months, like the Easy Savings Account*, you’ll earn a great rate, currently 3.00%p.a. for 6 months, and then 2.00%p.a after that. By doing this, you will earn $53 over the year just for parking your savings here! Add your existing savings and increase the regular amount saved, and the bonus gets even more attractive, simply for using a different type of account.
If you would like to calculate your savings, please click here
Our product Conditions of Use are available at www.easystreet.com.au. You should read and consider these Terms and Conditions when deciding to use any product. Offer terms and conditions: Rates are current as at 01/08/17 and subject to change without notice. This information is general advice only and does not take into account your objectives, financial situation or needs (your “personal circumstances”). Before deciding whether to buy any product you should consider your personal circumstances *Offer commenced 01/08/17 and is available on our Easy Savings Account for new accounts and new deposits only. The introductory rate of 3.00% p.a. includes a 1.00% p.a. bonus in addition to the standard variable rate of 2.00% p.a. available only for the first 6 months from opening the Easy Savings Account. Offer is available on all balances. This introductory rate offer can change or be withdrawn at any time. Offer ends 31/10/17. **Standard variable rate applies after 6 months. Easy Street is a division of Community First Credit Union Limited ABN 80 087 649 938, AFSL/Australian credit licence 231204.