Frugal February – how much could you save?

Money and Life
(Financial Planning Association of Australia)

It’s the shortest month of the year so what better time to make a change and save some money? We’ve got three tips for each of the next four weeks to help those dollars pile up in Frugal February.

Week 1 – the same lifestyle for less

In week one, we’re easing you into the swing of saving with some financial habits to get you in a new financial frame of mind without giving up anything – yet…

  1. Cash only – starting now, stash your credit card in a safe place and use only cash for all your purchases. Tap and go is quick and easy but it also tends to make us more blasé about our budget. When you find yourself hitting the ATM twice in one weekend for shopping and entertainment, you’re more likely to watch what you’re spending.
  2. $50 fun – think of at least four activities you can do – on your own or with friends and family, that cost $50 or less. It could be a low-cost gardening project, heading off on a hike or paying for a group lesson to learn something new. Just remember to include snacks or food in your plans and costing – a café pitstop or takeaway could quickly blow your $50 budget.
  3. Swap and save – beauty, books, clothes, appliances, if it’s something you spend on, try swapping instead. Clothes are the most obvious, but if you and your friends have a weakness for cookbooks or games, try organising a big swap party to grow your collection.

Week 2
 – be food wise (and fuel your bank balance too)

Take some time this week to put the spotlight on how you eat and save money along the way.

  1. Lose the lattes (long blacks, flat whites and macchiatos too) – however you drink it, takeaway coffee is a daily indulgence that can add up to a big annual spend of $1522 per year according to 2016 research from Skip, a food and drink ordering app[1]. Think about that figure when you’re deciding if a daily coffee is something you could do without.
  2. Pack your lunch – according to ING Direct’s Cost of Going to Work report[2], the average cost of paying for lunches at work is $129 per month. That’s an annual cost of $1548, roughly the same as that daily coffee bill. By brown bagging your lunch and forgoing your coffee, you could be $3k better off this time next year.
  3. Purge the pantry (and the fridge) – a lot of households keep enough stuff in the cupboards and fridge to last for weeks, perhaps months. How much could you save simply by living off what you already have instead of shopping for groceries this week?

Week 3 – entertainment that
s lighter on your pocket

  1. Dine at home – the average Aussie is spending $80 a week dining out according to the latest Australian Bureau of Statistics household spending survey[3]. So you could stand to be saving more than $4k this