August 21, 2018

1. Have an emergency/buffer account

+ Before I had a buffer account, I would need to access my main savings to pay for anything that was outside my usual weekly budget, such as car registration or flights. Not only is seeing you main savings number decrease to a number that you had already conquered disheartening, it also led a chain reaction and I would make more 'non emergency' purchases. By having an emergency account sitting at a nice round number (I choose $1000) it keeps you accountable to keep it at that number and only access it when it really is an emergency or an unavoidable purchase such as your annual car registration.

2. Have you emergency account with a seperate bank

+ If it comes with a debit card, keep that card locked in a drawer at home. That way you can't easily transfer the funds across to you main spending account in the blink of an eye, however if you are desperate for the money for a real emergency you do have access to the debit card for immediate access to you money, however it is a physical and very conscious act.

3. Check in with your monthly budget at the halfway mark

+ Not only does it make you budget a lot easier to manage when you break it in half, it also shows you where you might need to pull the reigns in, during the second half of your month. Alternatively, if you were to wait and do you budget summary at the end of the month, you may have completely blown out your eating out budget without realising it when you could have prevented.

4. Create a year long budget

 + By doing so, you can foresee your potential savings as well as it gets you mind turning about budgeting for when the one off big expenses occur such as when you car rego is due or when you are likely to have annual leave. It can also help you realistically set attainable financial goals and really illustrates how everything does add up. For example, I was able to see how much I was annually spending on my gym membership, and was alternatively able to see how much I much quicker I could reach my savings goals by cancelling my membership.

5. Pay yourself first

+ Now, a lot of people prefer to do automatic transfers which is great, and I have used this as a saving tool in the past. However,  at present I do prefer to manually transfer my money each fortnight mainly because
1. if there is a public holiday my pay will get pushes back and its a hassle to change the transfer date because you will be negatively charged & 2. because I have a variable income, some weeks I can transfer more than others. Plus, its a good feeling transferring money for you house deposit each week. I do have a minimum target amount I need to save each fortnight, but do always try to save even more.

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