Finances

3 ways to save money today – volume 4

1. Become a library member.
It costs nothing but can save you thousands! Instead of buying magazines I borrow them. If I’m interested in a book I often “try it out” from the library to know whether it’s worth buying. Some are real gems but most I’m glad I didn’t shell out cash for. Oh, and don’t let your items get overdue and undo all your good savings by having to pay late fees.

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2. Find free activities for the kids.
There are so many free places to take your kids, the list is endless. Once again, our library has many activities that are free. Check your local council for events. Ask people for recommendations. Search online. And if you decide on a day trip, pack food and water so you don’t have to pay a fortune for unhealthy food.

3. Pay your mortgage fortnightly. You may have heard this before, but it really does save you more in the long run. When we had a mortgage I found it satisfying to know our debt was going down fortnightly rather than monthly too, plus it’s not so much to pay all in one hit so you’re not as likely to miss it.

Don’t forget to enter the giveaway, which ends Friday!

3 ways to save money today – volume 3

by Kelly 4 Comments

1. Make your own deodorant:
I’ve been using this for 9 months and it’s absolutely fantastic. I was a total skeptic that this would work as I’ve always felt I “needed” an anti-perspirant. I’ve been very pleasantly surprised that the body odour I was masking with those freaky chemicals simply does not exist with the natural deodorant.

1/4 cup bicarb soda (baking soda)
1/4 cup cornflour
4 tablespoons organic virgin cold pressed coconut oil (I use the Melrose brand, available in the health food section at Coles).
10 drops essential oil (optional)

Mix all ingredients together until creamy. If the oil is solid it can be melted with heat to combine with the dry ingredients more readily. After your daily shower, just rub about a choc dot sized amount of paste onto the armpit area. In hot weather, your deodorant will melt unless kept in a cool spot, I keep mine at the bottom of the cupboard in the ensuite which is a very cool room so mine only melts on really hot days. If it does melt, it won’t affect the quality, just give it a stir and pop it in the fridge until solid again.

*A note about the coconut oil. The stuff ain’t cheap ($10) a jar. Don’t let that turn you off. One jar will make several quantities of deodorant and each quantity will last ages. Compared to roughly $6 a pop for a can of anti-perspirant (if I remember correctly!) you will definitely save money using natural deodorant not to mention the huge benefit to your health.

2. Shop around for insurance.
If you’ve been with one provider for some time see if they can do a better deal. When comparing companies, write figures down and present them to possible providers (who are keen to go one better than their competitors).

3. Give regularly to charity.
What? I hear you say – aren’t we talking about saving money? You can take or leave this advice but in my experience God will provide for those who provide for others.

My wool felt order has arrived and I hope to have the wool felt donut tutorial up within the next few days. Until then, God bless you 🙂

3 biggest money wasters

by Kelly 3 Comments

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People often ask me about our finances as we have a mortgage, 4 children and one main income. If someone is telling me they don’t have enough money I start with a checklist similar to this one.

1. Do you have a credit card/s?
If you really want to save money – get rid of it! If you have credit card debt make it your no. 1 financial priority to pay it off (and cut the card up immediately!)

2. Do you have pay T.V?
Not only a waste of time, a waste of money. With the money and time you would save by not having it you can invest in other things, the main one being yourself.

3. Do you smoke?
Not much to be said here. Do whatever you can to quit. Tobacco is an ongoing expense in every way – you become addicted to it, so repeat buying, your health will suffer whether you admit it or not and end up costing you not only money but quality of life. (For those who think I’m simplifying the problem – I’m an ex – smoker of 6 years. Quitting is one of the very best things I’ve ever done!)

If you change even one of these money wasters you will notice a big difference in your budget.
Happy saving!

Family Finance 4. False economy?

by Kelly 1 Comment

I’m always willing to try “home brand” products and many offer a true saving for a product equal to brand names. You do however have to be selective and be aware of certain pros and cons. Here is an example:
I recently bought “home brand” liquid soap. We go through a lot of liquid soap with young children in the house there is a lot of handwashing to be done. After it was all used up I bought a brand name soap to compare. I found I can use about a quarter of a squirt of the brand name, as opposed to 1 – 2 squirts of the “home brand”. Therefore, I’ll keep buying the brand name soap.
Another example is toilet paper. I buy middle to high range quality paper as the cheap paper disintegrates on contact with moisture, therefore you have to use about 3 times as much.
There are some “home brand” products I’ve used for a long time that are just as good as others, such as flour.
So, try all products but be aware that “cheap” products won’t always save you money.

Family Finance 3. Credit Cards

by Kelly 1 Comment

I’ve never owned a credit card. The only time I would like to use one is to simplify online purchases, but there are ways around that. I do not know anyone who does not have at least one credit card, and I do not know anyone who does not have credit card debt. Here is a very simple way to save money. Cut up your credit card/s.
Interest rates for mortgage loans may be falling to an all time low, but credit interest rates don’t change. How do you think the banks make all their money?
If you don’t want to give up the luxury/ headache of a credit card, focus on paying it off. Make more than the minimum repayments. Once you have paid it off ensure that it stays paid off.
Perhaps I sound a bit harsh in this post, but I really think it is up to the individual to be responsible with money. Part of that is not spending more than you earn and not spending money you don’t have (credit). Think about how much more that purchase is going to cost by the time you pay it off on your card. Is it worth it? Could you wait a bit longer and save the money, hence paying no interest?
I know that if I did get a credit card I would be constantly tempted to use it – its a temptation I don’t need.

2. Wants Vs Needs

by Kelly 1 Comment

WANTS and NEEDS are 2 very separate things, but in an affluent society we often become confused. If you are going to take your family finances seriously you will need to decide which category the majority of your purchases fall under and start to prioritise.
Here is an example:
It is 45 degrees celsius here today (again). We have looked at all of our air conditioning options and decided the cost is too great for us at this point. I hate the heat, it is awful. However, I get through the hot days using strategies, as do the rest of my family. None of us have health conditions that will be adversely affected by the heat, and none of us are yet elderly. Air conditioning is a WANT not a NEED. Millions of people in the world get along just fine without it, so can we.
When you have done your spending analysis it is very obvious what you have to do. If you’re overspending, cut back on or eliminate the WANTS. Once all of the NEEDS are payed for, then you can see what is leftover for the WANTS.
This also helps to simplify your life and organise your home. Consider every purchase carefully so that you don’t end up with useless clutter or things that are hardly used.

1. Analyse your situation

by Kelly Leave a Comment

The first thing I did to begin getting our finances in order was to purchase a small, lined exercise book. Over a period of 6 months I would write down every cent we spent, every day. Its not as hard as it sounds, once you have been doing it for a couple of weeks its just part of the routine.
At the end of each week write down the total. Then at the end of 4 weeks you can see what you spent over the month. I would also do separate totals for regular expenditure eg. bills, groceries, to note fluctuations.
Writing down every expense has a couple of benefits.
1. You find out exactly where all your money goes. If you need to make changes to save money, it is all there for you to make a start cutting back.
2. There is nowhere to hide! You must be completely honest in your recordings, therefore, I often re – thought purchases before they were made, knowing it would have to go in the book. I guess its like writing down everything you eat when trying to lose weight, the truth is there in writing.

Family Finance!

by Kelly Leave a Comment

Given the current global economic situation I thought some readers may benefit from a series of posts on family finances. In these posts I will share the strategies and ways of living that we use and have used for many years. The economic situation is not affecting us at all because we never live any differently – I guess you could say we are consistently frugal and careful.

A little background…

We are a family of 2 adults and 3 (soon to be 4) children living on a single income. My husband has a good job and works hard, but we are classed as “low income earners”. We have a modest but pleasant 3 bedroom single story home. We have a mortgage for this home. We own one family car. Our children are homeschooled by me – I am at home full time. Our luxuries are few, but we have a good lifestyle with plenty of healthy food, we always have spare money for unexpected expenses and we don’t worry about money. We believe that God always has and always will provide for us, but we also believe that He helps those who help themselves.

I hope that sharing our way of life financially will help you to improve your own. I will endeavour to leave my first post tomorrow.

All the best.