“Money Saving Strategies”

Workshop

Dom Del Borrello

Agenda

• Overview of WA economy & outlook• Australian Spending & Saving patterns• How to take charge of your money• Top 9- Money Saving Tips• Further information & tools• Questions

Current WA economy & financial stress • Mining boom finished• Slower population growth & softer economy• Weak growth in income levels• Consumer spending will remain lower

2016-17

No pay rises, reduced hours, job losses = lower disposable income $$ = stress

“…..time to challenge every expense... !!

Australian Spending and Saving patterns

How to take charge of your money

Take charge of your money

TRACK: your day-to-day spending

COMPARE: money in and money out

PRIORITISE: where you want your money to go

ACT: to make your money work or you

Tracking your day to day spend

Analyse your spendingHow much money is coming in? How much is going out?

Think about where your money goes each month: • weekly basics like food, groceries, transport • regular bills eg rent or mortgage, electricity,

phone, insurance • less frequent spending like clothing, holidays, car

rego, medical expenses.

Prioritise your needs and wants

Identify where you can reduce your expenses and save money

How to reduce your expenses • First, highlight the most important things in your

budget – your needs or basic necessities. • Then, identify the things you want but could do

without, if you had to. • What can you cut out or cut back?

…..Challenge every expense …...80:20 rule

Example – challenging & prioritising every expense

Mortgage: we need this, potential to find a cheaper loan.Groceries: we need to eat, potential to optimise shopping budgetPetrol: we need to drive (no buses), not much wiggle room.Mobiles: we need these, but open to review our plans to cut costInternet: a good deal already, recently reviewed.Health Insurance: necessary as we have a family.Netflix: we enjoy this, bit of a tough one!Stan: we don’t watch often, more expensive than Netflix Swimming lessons: our daughter’s - we see as important.My income protection insurance: can cancel, due to not working.Husband’s income protection: will keep as we rely on his wage.

Quick notes: $2,000 savings per year.

Money Saving Tips

“..how to give yourself a pay rise..”

Money Saving Tips9. Make a point to shop around on big ticket expensesThink about the biggest ticket items you spend on. These will include: mortgage, rent, car repayments, insurance (health, life, home, car) Best way to save money on these items is to shop around & compare current providers

• Call your bank & ask for “retentions” team• Talk to landlord/agent ask for rent reduction to stay• Get quotes annually on all insurance policies + check cover - ex-

cess• Look at bundled policy discounts (eg car + home, internet/mo-

bile)• Talk to a mortgage broker to refinance loan – cheaper deal

8. Stop relying on credit cards

• Convenient but expensive• Consider consolidating credit card debts into one loan or

similar• Use a debit card as an alternative or cash

Money Saving Tips7. Are you getting all the Centrelink benefits you are

entitled to?

eg Child Care, FTB – Part A, Part B

6. Go online - Selling unwanted goods & buy others • I fell in love with Gumtree – for “need it now” purchases & sales• Ebay is great for “planned” purchases eg printer cartridges, pet

medication, iphone accessories etc etc

5. Stop buying brand names – especially when it comes tosupermarkets• Considered blended shopping eg Major(s) Coles / Woolies com-

bined with Aldi (toilet paper, cleaning products, etc)• Reject Shop – parallel marketing (dishwasher tablets, pet food)• Price competition – use Reward programs

Money Saving Tips4. Alcohol – it is expensive – hello “Dan Murphy”

• Buy bulk and drink at home – if you must• 525% average mark-up at local pub or club.

3. Stop paying for Convenience – think for 5 minsQuick ways to reduce spending quickly include:• Cooking at home instead of eating out• Taking your lunch every day – snacks in drawer• Not buying coffee at work • Using food from your pantry instead of doing a weekly grocery

shop• No to - Milk, groceries, etc from 7/11 or Coles Express

Convenience shopping exploits what is known as ‘situational price gouging‘ – where prices are lifted The above are actionable, easy and will put real money back into your wallet / purse

Money Saving Tips2. Electricity / Utilities – will continue to rise• Never leave lights on• As lights blow consider changing them with energy efficient ones• Try not to use clothes dryer or pool pump all the time• Consider peak vs off-peak electricity – the “Nonna experience”• Dishwasher only with a full load• Spend 5 minutes on way out or way to bed to switch off !• Check your meter readings against bills !

Money Saving Tips - No 1.1. The best way to save money? Remain pro-active

• By attending tonite, it means that you are one of the few people who genuinely wants to save money.

• Always continue to self-educate on money, read personal finance blogs, money books and learn from experiences (both your own and others).

• Continue to challenge every expense and stay pro-active

Support

Where do I get more info, help or support ??

Stress & Support • You are not alone • Talk to someone (your Psychologist….)• Free resources

• Banks have “financial hardship” assis-tance

• www.savingsguide.com.au (blog free sub-scription)

• Educate / inform yourself

ASIC - Money Smart Website

ME Bank – website Ed

“…...Questions…...”

THANKYOU FOR YOUR TIME