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Salary freezes, unemployment, and paying off existing debts —many young Aussies finances are being stretched more than ever by the havoc of COVID-19. After years of scrimping, saving, and juggling to stay ahead on rent, bills, and more, do you still feel like there is no money or enough money left to spare? Don't worry, you're not alone! I used to be in a similar situation as you and that's why I’m here to walk you through 5 simple money-saving habits that you can develop while dealing with the ongoing pandemic.
The starting point to taking charge of your finances is to create a budget, which also means budgeting = another level of adulting achieved. Don’t get scared by the word budgeting, I can assure you that there is nothing to be afraid of. Budgeting is pretty simple, it allows you to create a spending plan for your money and ensures that you always have enough money for the things you need and the things that are important to you. This is legitimately necessary for the majority of us, as most of the time, we tend to live in the present and be worry-free about the future. So let's try and take baby steps from now on:
1. Be Absolutely brutal and honest about how you are spending money including minor expenses like the purchase of a $3.50 coffee.
2. Prioritise your expenditure to find a balance between spending and saving.
3. Differentiate between your needs and your wants. If you're staying in your house all week you don't need new clothes or designer shoes.
4. Self-evaluation is crucial If you’re spending more than you earn or you are not earning at all, ask yourself what you could cut out or cut back.
5. Bill smoothing is a system open for people with a tight financial situation and offered by utility providers and telecommunication providers whereby you pay them fortnightly or monthly, instead of having to pay the whole bill in one go.
Let’s face it, most of us are (or should be) stuck inside our homes, so that right there means there’s a lot of fat you can trim from your everyday spending. And unfortunately, this also means you have to make some sacrifices like:
Is COVID-19 concurring with some kooky online purchasing behaviour in your house? You're not alone. So, let's start buying a little more mindfully:
It’s easy to see how the rash use of a credit card can undermine even the most modest of savings goals. Therefore, paying your (or your parents) credit card in full and on time is the best way to avoid interest charges, late-payment fees, and an easy way to improve your credit rating.
Smart ways you can get most out of your credit card are:
1. Review your current card and get rid of useless ones to avoid annual fees that can exceed $750.
2. Use a balance transfer if you are faced with financial difficulty, now would probably be a good time to use a 0% balance transfer – transferring existing credit card debts from one card to another for a limited time period of 26months, known as the honeymoon or promotional period.
3. Pay down your card balance rather than having a fancy premium card with high interest, try out one of the dozens upon dozens of cards with lower interest rates, many of which are well below 10% p.a. Otherwise you could also get a fuss free person loan with even lower rate than 10%. YES!
We've recently partnered with award winning Australian based NOW FINANCE, Australia's leading go-to personal loan provider to help our members improve their financial wellness. They offer a range of attractive loan products such as car loans, debt consolidation loans, wedding loans, home loans, travel loans, and so much more. And guess what? Not only do they have loans with attractive interest rates but also flexible payment plans starting from 18 months up to 7 years. There are also no fees attached + getting a quote won't hurt your credit score too! How cool is that?
WeMoney eligible members can get a free rate quote and enjoy rates as low as low as 6.95% (6.95% Comparison Rate*) for excellent credit. If you are keen to explore, get your personalised quote now.
If you’re looking for a safe, no-nonsense place to store money, then a savings account could be a very, very helpful option.
Be mindful of:
While interest may be low, every single cent counts. Getting paid interest is an easy way to gain any extra few dollars that you could put towards something else.
We'd love to know what you think of our tips, if they helped, if you found terms confusing or anything like that.
If you have any questions on this topic, feel free to reach out to us across our socials and we would be more than happy to help!
Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.
Things you should know
Applications for finance are subject to Now Finance’s lending and approval criteria. Terms and conditions may apply. No establishment, account keeping or early repayment fees will apply to all new personal loans. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years with interest rates ranging from 6.95% p.a. (6.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).
About Comparison Rates
The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the Now Finance loans are based on a loan of $30,000 over 5 years.