Saving is hard and this is a fact that so many people in Australia are having to come to terms with. An average wage is considered enough to cover most expenditures and costs associated with living; but with a very small amount often left over after all of the necessities are taken care of, is it any wonder why adults are struggling to set aside cash for a rainy day?
And to make matters worse, there are 5 well-known sources of cash-vampirism that most of us will come into contact with on a daily basis. Here’s a closer look at each of them and how you might be able to reduce your spending and maximise your savings.
Credit card fees
Whether you are charged per purchase or annually – these types of fees can be some of the most painful on your wallet or purse. Unfortunately there is no end in sight, especially as banks utilise these fees to allow people to take advantage of the instant cash options that so many credit cards have to offer. A good way out would be to cancel the card, pay off any debts owed and then sign up for a debit card instead.
The average adult in Australia is signed up to at least one magazine subscription and as these costs can range from $100 to $500 a year – you could be missing out on the opportunity to save big as the years go by. As hard as it might be to say goodbye to a subscription for a hobby or lifestyle magazine; saving means making tough decisions.
Mobile phone plans
If you’re anything like the majority of Australian residents – you will own a mobile phone. But with so many different networks vying for your business, did you know that you could actually use their competitiveness to your advantage? For instance, you could tell your current provider that you’ll cancel your contract and go elsewhere if they don’t offer a better package; or you could sign up to a cheaper deal in the first place, potentially saving you hundreds each year.
Snacks and beverages
Two things that most people are guilty of over-exposing themselves to are snacks and soft drinks. Sure, these types of products can provide energy throughout the day, but they are also priced accordingly based on the demand for them. And as a result, the average person that works in Melbourne’s Central Business District will spend anywhere between $2 and $10 a day on these types of goodies. Now work that out over the course of a working week and you’ll soon start to see just how expensive these types of spending habits can become.
We all need food; there’s no arguing the fact. But considering the prices that some convenience stores pay, is it any wonder why so many struggle to keep their cash where it belongs – in their bank account? Instead of opting for high-end food chains who typically source their produce from the same locations as others that may not be as well-known, why not save yourself money by cutting out expensive, often branded products and go for a local producer instead?