Yahoo Finance 5 easy ways to quickly save money for your dream holiday
I don’t know about you, but I love my morning coffee. It’s the perfect pick-me-up to give me that shot of life before I knuckle down, and I wouldn’t be the only one who thinks so.
But you know what I love a little more than that?
Tropical beaches.
Unfortunately, one costs a lot more than the other, and it’s hard to save for a holiday when you’re balancing normal savings, rent, groceries and debts.
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So how can you get ahead of the curve?
Here are Financialadvisor.com’s James Gerrard’s four tips for getting your savings in check, and having leftovers for your dream holiday.
Cut the coffee (sorry)
Gerrard’s number one tip to setting aside cash? Make good spending choices, like losing the $4 double-shot-skim-flat-white in the morning (and afternoon).
That’s a whopping $2,920 per year, or $1,460 if you usually manage to get by on just one coffee per day.
If that’s a little tough or your dream holiday is a few years away, cut out three coffees per week, which will still save you $625 per year.
Divert $100 of your pay
Have you ever put 20 per cent of your hard-earned paypacket into a savings account, only to transfer it back out when you’re hitting dire straits two weeks later?
That’s not uncommon, and Gerrard has the perfect solution for this.
“Call up HR or payroll and ask them to divert $100 or $200 of your pay into a separate account,” he said. “That way you don’t see it, and you don’t count it when looking at your net pay.”
Invest
Investing can seem a little scary from the outset - putting hundreds or thousands of dollars into a fund and leaving it there for years until “the time is right”.
If that sounds like you, micro-investing might be more your thing.
For example, mobile apps like Raiz, formerly Acorns, can help you invest small amounts of money, and you can pull it out anytime you like.
Gerrard said it’s a great way to get into the share market, and take small savings steps at the same time.
The app even offers round-ups, which means it invests the round-ups to the nearest dollar of what you spend.
Sell your unwanted belongings
If you’ve recently upgraded to an iPhone X, selling your old iPhone 8 on eBay could put around $480 back into your pocket, and straight into your savings, and selling a Samsung Galaxy s 9 on eBay could get you upwards of $700.
Vintage clothing can also get you anywhere between $30 and $300 on eBay. If you’ve got a spare Saturday, you can even set up a stall at your local markets, which will set you back around $75 for the space, but you’ll reap it in sales.
In fact, Gerrard says you should probably sell anything you haven’t used in the last six to 12 months and put that money straight into savings.
Cut back at the gym
If you’re keen to stay fit but still wanting to save, Gerrard said quitting the gym and opting for road running is a great way to do it.
Gym memberships can be costly, especially in Sydney.
You’ll have to fork out $25 per month for a standard Fitness First 12 month membership, and it can rise to $31 per week if you’re only wanting their three month option, and that’s on top of an $85 joining fee.
Virgin Active’s Pitt Street Mall gym will cost you $45 per week on a three month contract, but if you’re wanting to sign up to Barangaroo, that will be a whopping $60 per week.
Running? Now that’s free, and you can utilise free outdoor gyms while you’re there.
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