I was surprised what #6 suggestion to save money was …
Money saving expert shares her practical saving tips that will set you up for the year ahead.
As the nation opens up once again with countless gatherings and reunions, we know Aussie households are likely to be feeling the pinch. Families will travel for interstate holidays, restaurants will swell with bookings and friends will celebrate life’s big milestones.
Off the back of a challenging year, financial stress is the last thing you want to be dealing with. To help us plan for the festive season and into 2022, news.com.au reached out to Serina Bird, proud Frugalista, money coach, podcaster and author, for her practical saving tips that will set you up for years to come.
1. Set financial goals instead of a budget
If you’re someone who is already cash-conscious or has a relatively healthy relationship with money, Serina finds a financial plan more prudent than a budget when it comes to annual spending.
“The most important financial hack for looking at a year ahead is your financial goals – having a financial plan. What is it you want to achieve in 12 months?” Serina asks.
Setting financial goals will enable you to get clear on your purpose and remind you that your money is working hard. These goals naturally underpin your spending decisions, keeping you on track without the need for a strict budget.
“This year my goal is to have an investment portfolio of $100,000,” says Serina. “When I’m confronted by choices – do I buy a new car? Do I buy this or that? – being very clear on my financial goal informs those choices.”
Setting financial goals is essential when it comes to saving money.
2. Become a savvy shopper: sales tips, bulk buying and cycles
Just like shopping on an empty stomach, shopping without a list can spell disaster for your weekly finances. Serina never finds herself without one.
“The shopping list is a big one for saving – buying what you actually need versus what you think you need,” she says.
Bulk buying when items are on sale or multi-buy promotion is another way to save on pantry staples. But if there’s a great promotion on an item or brand you’ve never tried before, Serina advises trying one before committing to buying multiples to prevent financial and physical waste.
Serina also recommends shopping around at different stores, including the likes of The Reject Shop, for common household items.
“Buying bargains in bulk is about purchasing genuine sale or limited stock items while they’re at a good price,” she says. “So when things are on special, especially when they are multi-buys like at The Reject Shop, stock up and take advantage of that.
Serina’s one caveat is to be measured and avoid stockpiling.
Lastly, planning certain purchases around sales cycles is another clever saving method, as you’re buying your favourite, often name-brand products once the prices drop.
“Supermarkets will regularly have loss leaders in a cycle. For example, certain brands of ice cream will be on sale every six to eight weeks,” Serina says. “So if there’s something you particularly like, watch the catalogues as the sale will return.”
3. Trick yourself into cashing up for end-of-year festivities
Each year, Christmas, holidays and the back-to-school period can catch up with many families. Serina believes that knowing these events are part of your yearly calendar and planning for them can ensure that you get through the festive season without big debt.
But it also helps to have an ace up your sleeve.
“Commit to starting a Christmas fund in January,” Serina says. “A good friend does this every year. She puts $20 in cash in an envelope each week. By Christmas, she has $1,000 that she can use to ensure her family has a special Christmas. The best part is that she hardly misses this money.”
Plan ahead to afford Christmas gift giving.
4. Get clever with gifting and buy throughout the year
While opting for Kris Kringle can be a fun way to manage overspending in December, gift giving can be a large expense throughout the whole year. Serina likes to manage this by purchasing gifts for a person or occasion regardless of when the celebration is.
“If I see things I think are going to be good gifts, I’ll buy them and put them in my gift drawer,” Serina says. “Having a gift drawer is good for birthdays you’ve got on the calendar, but it’s also handy for those last-minute gifts, drop-arounds and housewarmings.”
The gift drawer can also be a life saver for kids’ birthday parties, with Serina advising to stay away from fads that children might grow out of quickly – the gift drawer’s power comes from its longevity and versatility.
“There are so many birthday parties you have to go through each year and kids forget to give you the invitations – they’re lost in their school bags – and they’ll say, ‘Oh mum, there’s a party this afternoon at 3pm,” Serina says.
“If you’ve seen Lego sets or generic kid products on special, it’s fantastic when you happen to have that, along with wrapping paper and birthday cards, in your drawer. You don’t have to make a special trip; it’s not just saving money, it’s saving time.”
5. Host using the 90 per cent rule
When hosting events for friends and family, costs can quickly add up, so Serina takes a simple approach.
“Less is more,” she says. “Most people in Australia struggle with eating too much rather than eating too little, and sometimes guests can feel overwhelmed when there’s so much food.”
Instead of guests feeling pressured to eat the six mains and four different desserts you’ve slaved over, streamline your offerings.
Prevent your left over food from going to waste. But be sure to label them with the freeze date and contents.
“I have a loaves and fishes approach to catering,” says Serina. “It’s amazing, I’ll prepare food, but I know that guests will always bring something extra – even if you ask them not to. It makes them feel connected to the event. Keeping that in mind, I cater to about 90 per cent, and no one ever leaves hungry.”
But if you’re someone who loves showing abundance by having a full table spread, Serina recommends hatching a plan for the leftovers to avoid waste (which includes ensuring there’s enough fridge space to store them all).
“Think ahead of time about how you are going to be reusing and repurposing the food. For instance, when people are finished with the ham, you know that you can slice it up for sandwiches or make some into a soup.”
6. When eating out, choose lunch
Part of the joy of socialising is heading out to a beautiful restaurant. Unfortunately, this habit can completely blow the budget. Serina’s hot tip is to choose lunch over dinner. You’ll receive the same calibre of food at a slightly lower price point.
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