How to reduce your living expenses

Reducing your expenses is one of the best ways to increase your savings. By spending less each week you will gradually build up more money to inject into interest earning investments. We list some of the ways to reduce expenses below

Basic Living Expenses

These are generally the most difficult expenses to reduce, but reductions may be necessary if your basic living costs are higher than your income.
Food & Shopping

* Instead of buying food and a drink, pack your own lunch for work or school. An average lunch costs $10 and a drink can cost about $3. If you buy both two days a week that’s $52 a fortnight and $1352 a year.
* Be organised about your shopping – shop at the same time every week (or fortnight), know how many meals you need to shop for and make a list of what you need before you go to avoid impulse buys.
* Shop at a supermarket that is close to you so to save on petrol costs.
* Look at catalogues to find the best buys. Some food items are cheaper in bulk and can be frozen such as meat and bread. Many perishable items are reduced just before closing time.
* Avoid buying junk food and pre-packaged dinners. Not only are they bad for your waistline but fresh meals and snacks are cheaper.
* The size of packaging is often misleading – compare weights (written on the packaging) when comparing prices.
Use cloth nappies instead of buying disposable nappies. Make your own baby food instead of buying it.

Clothing
Use clothing pools for school uniforms and go op shopping for unique bargains.