Every day you are bombarded with ways to spend your money economically and you might be frugal at the grocery store but it might not be enough to make a difference. If you want to have enough money saved up to retire comfortably then you will have to think smart and use every life hack in the book. The amount that you can save right now might surprise you but the biggest effect will be how much you are able to save over time. Do not just think about how much you are saving now, think about how some money saving life hacks can help you save a ton of money over your lifetime.
Life Hacks on Saving
If you have a mortgage while saving into a normal savings account at the same time, then you are likely losing a bundle. It is better to put excess cash into your mortgage. Your savings account is likely paying you a smaller interest rate than you are paying on your mortgage so it would be better for you to pay off your mortgage first.
Or to really hack the interest rate then the best thing to do would be to put that extra cash into an investment that gives a better return than what you pay for interest on your mortgage. Knowing how to save is almost as important as the act of saving itself.
Do not ignore the freebies that you get by making larger contributions to your superannuation fund. If you are in a lower earning bracket then you might be eligible for co-contributions of over $500.
Don’t Give Away Money
All the life hacks in the world will not do your savings any good if you just forget about it and let the government take it. Accounts totaling up to $1.24 billion have been left or forgotten for over three years allowing the government to hold those accounts until they are claimed. Even more likely, there are over $16 billion in forgotten super funds that are eligible to be claimed.
Sometimes things are worth paying for but when it comes to getting your loans from a bank it can pay to look away from the big banks. The added cost of going to the big banks instead of non-traditional lenders can cost thousands when you consider mortgage, personal loans, and credit card debt over a lifetime.
If you are receiving a tax refund at the end of the year it might seem like a nice surprise but you are essentially giving the Australian Tax Office an interest-free loan. You would do much better to apply to withhold your tax payments until the end of the year and put that money to use before you have to pay your taxes. Make sure to have the money available to pay your tax upon tax time.
You might not be giving away your money to the government or the big banks. The small purchases each day add up too. If you saved $4.15 a day, the price of your morning coffee, and invested that in a high return investment vehicle that averages around 8 percent then you would have $1 million in 50 years. Not all life hacks work out over-night. Some of the most profitable life hacks can take a lifetime.