Organization Tips to Help Save Money at Home

Tips for Reducing Household Expenses for Australian Budgets

Dec 18, 2007

Getting organized at home and sticking to a budgeting plan are just as important as simply spending less for households looking to reduce everyday expenses.

With credit card debt and home loan interest rates rising, many Australian families need to save on home finances and general household costs. Without a household budget in place, it is easy to overspend and create financial chaos.

When organizing personal finances, there are several ways to get out of debt and help keep your bank balance in the black.

Get Organized with Money Management

Library books returned on time don’t attract overdue fees. Bills paid on time don’t attract late payment penalties. Credit cards paid on time don’t incur interest charges. Fees charged because of late payments due to disorganization are an unnecessary expense. Pay on time and save.

Make a Menu Plan

Planning meals in advance means that only necessary groceries are purchased. It is generally cheaper to buy products in bulk, but this only works if all of what is purchased is used. Throwing out the unused remains of a large bottle of cream means a smaller bottle would have been more economical. Having a menu plan will also reduce the need to resort to takeaway, further reducing grocery costs.

Write a Home Budgeting Plan

Collect all receipts for one to two months in a shoe box. Keep track of all purchases including lunchtime coffee or other snacks. Write out a simple list of income and expenses. Include all weekly (groceries, petrol), monthly (health insurance, school fees) quarterly (gas, electricity, water, rates), yearly (insurance, car registration, subscription/membership renewals), occasional (gifts) and personal (haircuts, clothing) expenses. Consider purchasing personal budgeting software to help with household financial planning.

Reduce Expenditure

It isn’t always easy to see where day-to-day expenses can be reduced to help get out of debt. Consider limiting the number of times lunch is bought each week, as it is cheaper to make something at home. Reducing alcohol or cigarette intake by even a small amount will add up to significant savings over a year. Increase the amount of time between haircuts. Changing visits from every six to every eight weeks will save the cost of two haircuts a year.

SimpleSavings.com is an Australian website with thousands of tips to help reduce everyday costs. They also have budget advice and a system to help ensure bills are paid on time. It can also help to review all regular bills, such as telephone, insurance, mortgage and credit card, to make sure the current contracts are the best possible. If overwhelmed by the number of options and deals available, contact a business such as SaveOnBills, which will help to narrow down the choices.

Reduce Consumption

Using less will cost less. Turn off the TV, microwave, DVD, video and computer at the wall instead of leaving them on standby. Bucket water from the bath into the washing machine or onto the garden. Only run the dishwasher and washing machine with a full load. Dry clothes in the sun instead of running the clothes dryer. Use energy saver lightglobes. There are hundreds of small ways to reduce consumption, and therefore expenses, every day.

Consider Credit Card Debt Consolidation

Get out of debt by taking control of credit cards. If it is too tempting to shop on credit, consider getting rid of the cards altogether. Pay them out by taking out a personal loan, as the interest rates will be lower and the temptation to continue to spend is taken away. Many finance companies offer specific debt consolidation loans with special rates for credit card debts. Debit cards from the bank can work as credit cards for online and telephone purchases, without increasing debt.

For those feeling overwhelmed with the number of bills and struggling to simply put food on the table, organizations such as CAP (Christians Against Poverty), which operates throughout Australia and the UK, can help to organize a budget and payment of debts and ongoing living expenses. Charities such as St Vincent de Paul and the Salvation Army can also help with vouchers and emergency supplies.

The copyright of the article Organization Tips to Help Save Money at Home in Personal Budgeting/Finance is owned by Susan Whelan. Permission to republish Organization Tips to Help Save Money at Home in print or online must be granted by the author in writing.