5 Budgeting Hacks You Can Implement Today

Preventing financial difficulties before they happen is the best way to keep your credit score healthy in the long run. The key to this is being in control of your spending. When you’re trying to save more and budget better, little things can make a big difference. Make these small, easy changes and watch your savings add up.

Power down

Even when you power down electrical devices, such as your computer, many remain in a standby mode and continue drawing power. Energy Australia estimates that this ‘standby power’ can account for as much as 10% of your total electricity bill! Get in the habit of turning off major electrical devices at the wall every night before bed or if you’re leaving the house for a prolonged period. Common culprits include your television, computer, microwave and stereo.

Identify “income leak”

This is those automatic habits you don’t think about that can really add up over time. These may include that second café coffee of the day or afternoon trip to the vending machine. Get a small notepad and record everything you spend for one week. Then sit down and red line a few small but regular expenses you could do without. Calculate how much you’ll save a month and redirect this money to your savings instead.

Learn how to budget better and start saving money!

Make a meal plan

Takeaways, food waste, overpriced convenience foods and buying work lunches are all common bank account drains. The secret to stopping this is to set aside time once a week to plan out your meals and make your shopping list accordingly – then stick to it! The more often you do this the more you’ll refine your plan and find even more ways to save by buying only what your family needs.

Delay purchases

It’s so easy to impulse buy, whether it’s a magazine at the newsagent or a new piece of clothing you don’t really need. Set yourself a new rule that any purchase over a certain price (depending on your individual circumstances this might be anywhere from $20 to $100) must be delayed for at least 24-48 hours. You will often find that once this time period has passed, so has the urge and you don’t want the item after all. If you still really want it, then go for it – just factor it into your budget.

Track your expenses

It’s easy to blow through your budget when you don’t have anything keeping you accountable for what you’re spending. A dinner here. A few drinks there. It all adds up if you’re not paying attention. Download one of the many free expense tracker apps that can help you budget. They can give you a clear picture of your finances by linking to your banking data and alert when you’re getting close to your budget goals for the week or month.

Another important part of staying on top of your finances is knowing what’s in your credit history. Your credit score is what lenders look at when assessing whether you’re a good loan risk. Get a free copy of your credit report today.