A leading financial adviser has revealed the six clever savings hacks you need to try to boost your bank balance quickly.
Victoria Devine – who recently made the Forbes 30 under 30 list for 2021 with her She’s On The Money podcast – said saving all comes down to embracing the idea of ‘delayed gratification’, rather than looking for immediate gratification.
There are six things that have helped the 30-year-old from Melbourne to grow her own bank account, including setting micro goals and doing as much meal planning as possible.
A leading financial adviser has revealed the six clever savings hacks you need to try to boost your bank balance quickly (Victoria Devine pictured)
1. Set micro goals
According to Victoria, the reason why so many people fail with their saving is because they set big, lofty goals that are far too unattainable.
‘So many people come to me and say they want to save $20,000 that year, but they only earn $40,000 and work part-time so that’s just not going to happen,’ she said in a recent podcast episode.
‘You need to set micro goals and aim to put away a realistic amount each month, as this means it’s so much easier to see your small achievements, and your goals will get easier.’
For example, the financial adviser said if you want to save $10,000 in 12 months, you need to work backwards:
‘This means your monthly goal is $833.33 and yes, you do need to be that specific,’ she said.
‘If that sounds too much, break it down weekly, which means it’s $192. It’s all about breaking down your big goals into more manageable pieces.’
Victoria (pictured) recommends you cut down on non-essential spending, whether it’s a weekly expensive dinner with the girls or buying a coffee out every single day
2. Cut down on non-essential spending
Non-essential spending is the enemy of saving.
Victoria recommends making a conscious effort to identify where you are spending your money on non-essential items, and then see if you can cut that down.
How to improve your finances instantly
1. Up your education: Expose yourself to as much information about finance as possible. Listen to podcasts, read books and articles and talk to people as much as possible.
2. Reduce non-essential spending: If you want savings results, work hard to reduce the daily spend that seem innocuous, but which also add up. Things like this include your daily latte, a gym membership you don’t use and buying lunch. To do this, Victoria said you should write down everything you save and revisit the list at the end of the month. You’ll be shocked at how much you manage.
‘If you’re someone who finds you go out to dinner with your girlfriends more often than not at the weekends, why not suggest dinner at home where everyone brings a plate?’ she suggested.
This could save you $50 on food and then an extra $15 on that glass of wine catching up afterwards.
As well as this, Victoria strongly recommends making your coffee at home as much as possible, as while it might sound small, doing this can have a dramatic impact on your savings.
Spending $4 per day on coffee quickly adds up to $1,460 by the end of the year.
‘Even if you cut down to buying a latte just three days of the week instead of seven, you’ll notice savings,’ Victoria said.
3. Become a more conscious consumer
It might sound easier said than done, but Victoria said being a conscious consumer is key to saving big.
‘Put time between you and your purchases,’ she said.
‘Instead of just adding to your cart and buying straight away, wait 24 hours, or a few days and see if you still really want that product.’
If you do want the item after 24 hours has elapsed, by all means, treat yourself, but more often than not, people find they don’t want the item.
You could also try deleting apps like ASOS, The Iconic or even Instagram, which subtly encourage you to spend.
‘Instead of just adding to your cart and buying straight away, wait 24 hours, or a few days and see if you still really want that product,’ Victoria (pictured) said
4. Try meal planning
Meal planning is one of those things financial advisers always tell you to do, but you don’t have to spend hours in the kitchen prepping food – rather, you just need to have a plan.
‘I know that when I haven’t planned a meal, not only am I more likely to get UberEats or takeaway, but even if I go to the supermarket, I still end up spending more,’ Victoria said.
‘You’d be surprised how much you can save if you order UberEats twice a week and usually spend around $60. That’s $3,120 in a year, or an international holiday.’
The money expert said you should work out what reasonable and affordable swaps you can make when it comes to grocery shopping, like going to Aldi or swapping to homebrand items.
Doing these things will make it much easier to save.
5. Make the most of what’s out there
Victoria is a big fan of apps that round up the cost of something and save it, as well as investing platforms like Raiz that take and invest your small change.
‘These apps are really good for things like paying off debt,’ Victoria said.
You can also try money templates and games, like colouring in boxes when you’ve saved a specific amount each week.
Victoria Devine is the author of the new book She’s On The Money (pictured)
‘These can make progressing with your saving fun, and keep you on track,’ she added.
6. Be smarter with essential items
Finally, Victoria said if you can get smarter about how you shop for your essential items like groceries and petrol, you’ll easily save more cash.
‘Make the most of places like markets, bulk food stores, vintage and op shops, sales, and things like Facebook Marketplace, Gumtree and eBay,’ Victoria said.
Finally, remember about places like libraries, which she said are ‘so underrated’ for what they offer.
Before you spend on your essential items, think about how you can save cash.
Victoria Devine is the author of the new book She’s On The Money. For more information, please click here.