Tag Archives: daily saving

Debt – Easy Come, Not So Easy Go – Debora’s Story

Debt is is to fall into, not easy to get out of - humble saversRecently we asked for stories of people having difficulty with debt and what they did to try get out of it. Below, is a story from Debora, age 44 who lives in Australia. She is divorced with three school aged kids.

Her debt was driven by a credit card that couldn’t be controlled after losing her employment. The story highlights just how easy it is to fall in a financial hole when things go wrong. Debora has made a real go at staying afloat and trying to get herself and the family back into financial shape. You’ll note that the dreaded credit card will never play a part in her life again, once it is paid.

This story is all too familiar and many will say that all the story tells is the need for being cautious. However, society has put pressure on everyone by making them feel guilty if they don’t keep up with the latest gadgets and fashions. And of course, no parent likes to see their kids go without.

The marketers know all about these family pressures and target our emotions every day. So, be careful out there, don’t let the marketers win the battle.

Debora’s Story

I was out of work for one year when my employment contract was cancelled with 15 minutes notice. I applied for every job I could, which averaged one application a day for 12 months. The staff at the employment agency were at loose ends as to how to assist me in landing a job. I applied for everything – they couldn’t dumb down my resume any more without leaving huge gaps. I did not think I would be out of work for so long.

After three months I was concerned. My savings were small and had been used to pay the credit card. So, as a single mum with 3 children and only the centrelink benefits (social security) – I struggled. That was two years ago. I still have a major credit card debt. They were not interested to speak to me when I lost my job. They were not interested in any assistance as I was making small payments (all that I had left). They only got onto me when I hit my limit. I have told them and I still tell them, I pay what I can, I send through a copy of my budget so they know all my earnings and what I have left to pay them.

I have a strict budget – my children know what I earn and know if I can afford the ‘school excursion’ or not. Any ‘extra’ cash goes onto the credit card. Being off sick is not an option – if I don’t work I don’t get paid. I work two admin jobs now. Rent is the biggest cost and now they are looking at also charging for water!! I pay electricity in instalments, no longer have a mobile, the children need the internet for school so I had to get that on this year, the food budget is about $50 per fortnight. Interestingly, a private company specialising in helping people with debt would not assist me as I did not earn enough to be a customer of theirs.

I know I am not the only one doing it tough like this. I know I have a tough budget and that I am surviving. I know that I will get this credit card  paid off and NEVER have a credit card again.

I don’t use the word debt, I prefer financially challenged. It is a learning curve for me and my children.

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Five Ways to Save Money – The Groceries with Eight Bonus Quick Tips

Buying groceries is the biggest recurring expenses for most households and it can be a huge drain on the weekly cash flow. Our Five Ways to Save tips will help you target the best opportunities for saving on the grocery bill.

1.    Plan at least a week ahead

Buy what you need by using a list for all meals for the upcoming week or month. This is will also combat the urges you may have while shopping to simply ‘stock up’ on everything, only to throw much of it out as it passes the use by dates. It is easy to plan ahead, simply make a list of meals required for the week, check with recopies and what food you already have in the pantry, and you’re done.

2.    Take your food to work

The bottom line is buying lunch at work is expensive in so many ways. Often, good food goes to waste that could have been taken to work. You will also get tempted to buy a lunch that is not only expensive, but can also be unhealthy and this leads to other costs associated with poor health.

3.    Take advantage of home brands

Home brands are normally much cheaper than big ‘well known’ brands. However, not everyone likes home brands due the perceived compromise on quality. The supermarkets have learnt the benefits of keeping the quality high and this is why most home brands are now good quality alternatives. Home brands for items such as milk, fruit and veg etc, is much the same quality (have you seen a home brand cow?) but of course at a much lower price.

4.    Get good at Maths!

Nothing beats being good at math to really work out the true cost/benefit of groceries especially when evaluating ‘special offers’. It’s hard to shop without being offered product as a 3 for 2 special, or the same item being offered in several different sized packaging, with only one size being discounted.  All of this can be confusing.

Being able to mentally do the math and calculate the true value of a special is great. If your math is not good just practice and you will improve. If all else fails take a simple calculator with you, (you probably have one in the form of a mobile phone).

5.    Avoid driving around town for specials

The true cost of running a car is often not fully understood (see Five Ways to Save – Car). The cost of depreciation, wear and tear is far greater than the cost of fuel. Not only that, it takes time to drive around, park etc and time is money! Try and shop somewhere close by where there is a fair bit of competition. Use a bit of shoe leather to find the deals and make you way home to do more profitable work.

Bonus Eight Quick Tips for your visit to the supermarket:

  1. Eat before you go –  This will reduce temptations to buy because you are hungry
  2. Be wary of big displays at the front or back of aisle – They are targeting impulse buying from shoppers
  3. Look at products high up and low down on the shelves – they tend to be cheaper.  The products at eye level pay to be there so will most likely be more expensive or are well known brands
  4. Keep a check on when perishable stock gets reduced – Sunday afternoons can be a common time, and shop then as savings can be had when you intend to use the products quickly
  5. Cross off items the shopping list as you shop – Keep on track with your purchases and stop you straying to buy impulsively
  6. Go without the kids – This will save you the pester power products
  7. Avoid busy times – It will reduce stress and prevent you from buying on impulse to make you feel better or get out the supermarket quicker
  8. Find out when the fresh vegetables and fruit come into season – They last longer when you get them home. Get to know your local fruit and vegetable market staff, they’ll keep you informed.

Image: Ambro / FreeDigitalPhotos.net

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Five Ways to Save Money – Daily Saving

We are all creatures of habits; the trick is to develop good habits. The Five Ways to Save tips below will help you to save just a little more each day which will make a big difference to your Savings account at the end of the year. 

1. Leave the car at home

A car is extraordinarily expensive. Most people only measure the cost as they fill it up with fuel. But wear and tear adds significantly to deprecation which is the biggest killer (se also Five Ways to Save – Car). Use public transport, walk a bit or share a lift. These three things are not only better on the pocket but also better for the environment and will keep you a little fitter!

2. Take your lunch to work

Yes, you knew this would be here. Daily lunches and the daily coffee might be small luxuries but they eat into your savings (no pun intended). If lunch and coffee/drink cost $10.00 per day and  work say 230 days of the year, that comes to a yearly cost of $2,300.00 You can have a great holiday on that or update the home entertainment system. So, make sure you have last night’s left overs tucked into your work bag.

3. Educate yourself

Knowledge is power and now that you are not driving to work, sit back and relax by reading books or surf the web. Better still, start a course that will help you get that new job.  Better education brings more rewards and creates discipline, so what’s stopping you, get studying!

4. Switch the lights off!

Power bills are going through the roof and they’re not coming back down any time soon. Okay, being told to switch the lights off will bring back memories of your parents screaming at you, but the action will also trigger other ideas. Switch power equipment off at the plug, make sure the dishwasher and the washing machines are full before washing, use appliances during off peak times. There’s lots of ways to now save on power so make a start.. switch the lights off!

5. Spend time with your partner, kids, relatives and friends

It is so easy to fall into the trap of avoiding time with the loved ones. It’s so much easier to find time to play with all sorts of weird and wonderful things that you have just spent your savings on. We have all heard of the saying ‘Time is money’; well putting time into your relationships is like putting money in the bank. Strong relationships will reward you many times over.

So, you to must have some good daily saving habits, please post them. You may also have some bad habits, What are they? Why can’t you stop these bad habits? Post them also on the comments section below, I’m sue we can help!

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