Credit Crunch Calender
This budget calendar speaks English not finance, so get saving savvy and practice these little tricks to avoid the drama, because, contrary to what Mase and P. Diddy said (in his Puffy days), Mo’ Money is not Mo’ problems…
January – Budget Bonanza: Want to get the most out of what you put in? Dr. Lois P. Frankel, author of Nice Girls Don’t Get Rich, says a budget is a “plan that will you make you more conscious of how you spend your money” and she’s right. Allocating money to things you need – such as phone credit, groceries or toiletries – makes it easier to see how much is free for the fun stuff like going out and shopping. Dr. Frankel advises you devote 10% or more of your salary per month to savings, only 3-5% on clothing, and 5-10% on personal/miscellaneous expenses. The rest should be divided up between home, medical and transport expenses. Our advice? Make the rest of the year flow well by drawing up a budget and stick to it – that way you’ll know not to spend what you don’t have, and you’ll learn great money skills along the way! Visit www.understanding money.gov.au and download their budget planner. It allows you to customise it based on your income and expenses – simply insert your expenses, debts, and income, and let it calculate for you. No numbers, no worries.
February – Get Super rich, or die trying: Nah, we don’t really mean that. But you might as well be close to it, if you’re relying on super to just fall into your lap as a fantastic sum for your retirement. Have a look at your existing super scheme (with a professional if it sounds more like gibberish than English – because we don’t get those commercials either) and find out just how well it’s working for you. Changed jobs a few times? You might have super floating around in all different accounts, where it’s not exactly working as well for you. Visit www.findmysuper.com.au to consolidate it into one account, where it’s just going to earn more.
March – Loyalty Pays: Loyalty programs are a great way to take advantage of special offers and discounts, and it’s usually free to sign up to them. So if you’re a regular at Dotti and Gloria Jeans, buy all your books from Borders, or Greater Union’s your cinema of choice, see what they have available and be rewarded for your custom!
April – The Catastrophic C and Dreaded D words: Ahh, Credit Card Debt. The bane of many existences, and for good reason. Without gloating, I would like to mention that I have never owned one of these, despite having paid off a three year HECS Debt, bought my own car at 18, and own three (very high-end) designer handbags. Why? I save for everything I want and refuse to spend money I do not have (the essence on which a credit card is based). It is a common fact that many young people who declare bankruptcy or are stuck in up to $20,000 worth of debt do so at the hands of a card that funds their lavish lifestyles. Furthermore, having a credit card debt can severely impact your ability to get a loan (and with low interest rates and a doubled first home owners grant, this is what we should be looking to). So unless you need one for emergencies (real ones, not emergencies like sales at Myer), the first stop to curing yourself of all your financial woes is to A) ring up the credit card company and cancel your card, or at least drastically reduce your allowance to something like $5000; B) pay your existing credit card debt off, and C) never get another one again. If this seems a little drastic, ensure you get one with a low annual fee, minimum spend limit and interest rate and regularly pay off more than the minimum – the last thing you want is to be paying off a coat you bought last year in 2017 (with interest).
May – Cafe Conundrum: A $10 lunch a few days a week or a $3 coffee every day before work adds up to more than you think, and in the long run, it’s not so great a health move. Cut back on coffee to three days per working week, and treat yourself to only one take away lunch. Subscribe to super-cheap food title Super Food Ideas (it comes out monthly and tallies up the cost of each meal so it’s budget friendly too) and prepare a healthy, satisfying dinner, which could make a great left-overs lunch everyday of the week. Check it out at your supermarket and see for yourself.
June – Intelligence in investing: This doesn’t need to be a scary word reserved for creepy old, fat men at the bank. Let the money you’ve saved so far work for you by depositing it into a high interest online savings account with limited withdrawal options – all the major banks and ING usually have them, at around 7% interest per annum. Saving for your big goals (trips, cars, parties or designer bags – whatever they may be) has never been easier – especially considering those piggy banks just don’t do us justice anymore!
July – Fun Nights In: Make the most of the coldest month of the year by staying in with a DVD, some booze and supermarket snacks. Not only will you save on A) parking lot charges or taxi fare; B) Cover Charge and C) the constantly rising cost of drinks, but you can just laze about in clothes as daggy as your parents. Single? Call the boys around for a poker game, beer and an action-flick, or holler for your besties and a rom-com, some indulgent chocolate and desserts, and a hell of a bitch-fest. Attached? Well, you don’t need advice on cuddling up to your significant other. Saving has never been more worthwhile.
August – Thinking Caps cheat the banks: It definitely pays to be money-savvy, so rethink some of your existing telecommunications and health care options (mobile, internet, gym membership, health insurance fund). These options are constantly changing and the one that you chose last year might not necessarily work for you now. Stay on the ball when it comes to plans that offer freebies to mates on the same network, or gyms with cheap offers for refer-a-friend or personal training services and the like. Gone back to uni for some post-grad study? Some banks offer little or no account keeping fees if you’re a student. Analyse your statements and see where you can save – if it’s not account keeping fees (withdrawals, EFTPOS charges, phone banking costs etc.) that’s swallowing your dosh, then ATM’s could be the culprit. Read up on the different account options and mobile phone offers and make a decision tailored to your lifestyle – you’re not going to save anything if you’re not bothering to investigate!
September – S/he who sells, saves: Make the most of your spring cleaning by selling your old junk online. Or if you want to have some fun while you’re at it, hire a market stall with a couple of your girlfriends and sell your wares (boys, we now you amass crap, so get a brave girl in on the cleaning-your-place action). You never know, you could learn some entrepreneurial skills while you’re at it! Nothing to sell, but have a lot of talent time? If you’re a crafts whiz, great shopper or Penn Badgley-style nerd, why not turn that into a little side job – sell your crafts online, take up personal shopping or start tutoring. Not sure how to get word out there? We’ve got a tip: Put your Facebook and LinkMe networking skill to good use. Then deposit the money you’ve saved…into a savings account fit for a splurge, like a holiday, statement bag or shoes, or for the fellas, a great home theatre/sound system/video game console/car parts etc (Can you tell a girl wrote this?).
October – Tip yourself: Wait staff are reliant on tips for a reason – all that loose change adds up to a significant amount of cash. This month, discipline yourself to empty your coins into a jar at the end of each day, and, if you never cheat and remove anything from it, you’ll have a worthwhile amount to deposit into the bank. If it works out, try it every month and you’ll be rolling in savings by this time next year!
November - Make a List, Check it Twice: The Silly Season’s about to come around, and it’s best to be prepared. Write a list for all your shopping so you don’t spend more than you need to (and you won’t forget anyone on the present list either), and take into account costs for entertaining, parties you’ll need to attend and a fab NYE outfit. Planning will help you ensure that everything is done without a credit card crisis (sounds awfully familiar to credit crunch crisis, therefore must be bad) come January. And we bet you know what we’re talking about, because we’ve all been there before.
December - ‘Tis the season to be frugal: One word: SALE. You’re seeing it everywhere this month, and for good reason. Stores make all sorts of fantastic offers before Christmas, and then go even crazier for the Boxing Day sales. Promise yourself that you will only buy on sale or from outlets this month and see how much you save. Use the difference to either help out a charity (you can claim it come tax year) or buy yourself a Chrissie pressie, you know you’ve earned it!
