Yes I save 70% of my take home pay (Income) while working a full-time corporate job in Australia. I'll share with you some tips I follow that has helped me achieve this. Not all the tips may be relevant to you but they might be a great place to start.
Timestamps:
0:00 Introduction
0:20 Track your expenses
1:56 Delay your purchases
5:25 Buy annual subscriptions
6:13 Buy the lowest "unit price"
7:57 Ask your friends what they spend
8:52 Pay yourself and bills first
9:58 No magic to saving money
10:50 Like comment subscribe
Tip 1: Track your expenses
You can't improve what you don't measure. So the first thing you need to do is spend a day, week or month tracking your expenses so you understand where your money is currently going. There is no need to feel guilty about anything. Just get the numbers down for now. It's important you understand where to start.
Tip 2: Delay your purchases
I simply delay my purchases depending on how large the purchase is. If I'm looking to spend more than $500 on something, I usually give it a month before I go ahead and purchase it. In this time I usually end up researching more into the product or service. I also figure out whether this is really something I want in my life. How will it add value, how will it improve what I already have, or what is it replacing?
Tip 3: Buy annual subscriptions
Simply put if you can get the product or service "cheaper" buy committing to a longer period - why wouldn't you? Being able to pay month to month should be considered against the savings achieved through committing to a full year in advance of payment.
Tip 4: Buy the lowest unit price
I always try and buy the lowest unit priced item when I buy food and other groceries. You can save more than 50% in some food items if you simply by the cheaper priced item when it comes to food. There are often cheaper food substitutes that you can select that taste just as good but save you quite a few $$$.
Tip 5: Ask your friends what they pay
I'll often ask my friends how much they pay for their phone/mobile bill, internet, electricity etc. I find it's a great way of knowing if I'm paying too much or actually have a great deal for my various expenses.
Tip 6: Pay yourself first
The first thing I do when I get paid is set aside money for bills and transfer money into my savings account. It's incredibly important that I do this as soon as I get paid because then I feel like I'm in control of my finances and I'm really setting myself up for my longterm financial goals. If I don't do this then it feels like I'm giving myself the "leftover" savings and money I have after I wasted it on things I don't really need in life. I also feel more comfortable spending on things when I know I've already set aside money for savings and bills.
Tip 7: There is no magic to saving
There is simply no magical formula to saving more money. You either have to earn more or spend less. The decision is completely yours but don't get fooled by gimmicks or fancy apps. It simply comes down to the 2 levers of income and expenses. If you can change those levers you can change your savings rate.
Thanks for reading and I hope you will subscribe for future content. I think you'll really enjoy it. Sanjee Sen.
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Disclaimer:
The information provided in this video is general in nature only and does not constitute personal financial advice. You should also consider seeking the advice of an investment advisor who holds an Australian financial services (AFS) licence or is a representative of an AFS licensee. Be sure to work with someone who understands your investment objectives and tolerance for risk. Your investment advisor should understand these products, be able to explain whether or how they fit with your objectives, and be willing to monitor your investment alongside you.