With the share markets currently resembling a roller-coaster ride, and worries about interest rates and the national economy causing levels of doom and gloom in households across the nation, Babble offers up three easy things, and three rather dramatic actions, families can try implementing when trying to do their bit for financial stability.
Three Easy Things…
Stop buying lunches. While it may not seem much to buy a sandwich and coke for lunch at the local food court, buying lunches each day rather than brining your own to work or school starts to add up. Even a simple toasted sandwich and a juice ends up costing around $6.00. So multiply that by five and you have $30. That’s $120 a month, so around $1,440 a year. And that is just one person. If both parents work and are buying lunches, double that. Add on tuck-shop a few times a week for two kids, and that is over $3,000 in a year because you can’t find the ten minutes the night before to pack a lunch. If you need an added incentive, think of how healthy a home-made meal will be compared to your store bought lunch, and taking lunch to work and school starts to make a lot more sense.
Spend more time outdoors. Think about how your family spends their weekends and holidays. Do you take every opportunity to get out in the great outdoors or are you inevitably cooped up inside your house or at the local shopping mall? Modern Australian life means that time spent in the home usually results in heating or air-conditioning being utilised, and this costs. Spend your time outside the house and your air-conditioning doesn’t need to be on during the heat of the day. And while you are spending that time away from home, try to avoid recreational shopping or other pursuits that end up emptying your wallet. Take your kids to a national park. Visit the beach. Check out your town’s history trails or bike paths. Nothing in life is free, but there is usually a choice between a costly option and a cheaper one!
Check out freecycle. Most Australian cities now have freecycle groups. This is an online service where people will post things that they are giving away for free. You can also post asking for things you want, but the normal etiquette is that you shouldn’t be unreasonable in your requests, and some groups may expect you to start giving before you start asking. While it is probably not a practical way to get everything you need for you household, it can save a considerable amount when you find something you need. Items advertised on freecycle groups include furniture, computers, toys and clothes.
… and Three More Dramatic Options
Don’t buy things on credit. Or at the very least, think it through first. It seems simple, but in a world where we are used to buying what we think we need as soon as we want it, only buying things when you have the cash available can be quite a change, and a change that makes a huge difference family finances. If you don’t buy on credit, you don’t end up being slugged with credit card fees and of course, credit card interest. But it can have an even more radical effect — you start to think about the difference between needing things and wanting things. Often if something is really needed we will find the cash to pay for it if that is the only option. But think back to the last month’s worth of credit card purchases — how many of those things did you need right then, and how many could you have waited until you had the cash? How many things would you probably not have bought at all if you had just waited a bit longer? Often if you are willing to pay cash retailers can be induced to offer a bit of a discount, which means yet more savings. With many families gearing up for the orgy of spending that is Christmas, it is worth taking a moment to think about how we use and abuse our credit cards.
Become a one car household. Just like giving up the credit-habit, this is one that is much easier than you probably think it is going to be. If you were forced to rely on having just one car, you could probably do it, even if it involved using public transport. As someone who didn’t even have a driver’s licence five years ago, I can guarantee that you find ways around using a car when it is not an option, so having one car for your family is a relative luxury! As well as the cash gain you will make selling your second car, there are the savings on rego, fuel and servicing. Added incentive — you are definitely making a decision that is beneficial to the environment.
Cancel your trip away for the school holidays. We all look forward to a break, and many Australian families are probably excitedly looking forward to their trip away come end of year break. Yet how many times has your trip not measured up to expectations, and left you with a debt that you were paying off long after your holiday? No-one is saying you shouldn’t spend quality time having fun with your kids during the end of year break, but think before you book — are you spending all that money to fly to the Gold Coast and visit the theme parks for a week because that is the only way you and the kids are going to be happy, or could you perhaps have just as much exploring your local area?
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