how to spend less and save more money

Here’s a method that actually works when it comes to spending less and saving more.

"I'm cutting back on spending!" - every person everywhere.

But does it happen? Often times, no 🙁

Without simple guidelines we roll into the idea of cutting back on spending with no structure - but we need a system to keep our mitts off our money.

Enter: the low-buy year.

This isn't a no-buy year where you try to spend zero unnecessary dollars - this is about choosing a few things to cut back on so you can still spend, but save some money at the same time. The benefit of mastering a few of these is also the potential for it to become a long term habit, which serves you forever!

Your behaviour

Before we design your low-buy year we have to identify the areas in your spending that you struggle with. What categories in your budget do you spend too much on? You might have to do a very boring but very necessary assessment - download or print your bank statement and look for the trends across the average month - what is your money going towards and where are you overspending? You most likely already know which categories you need to scale back on!

Assess areas like:

Groceries
Phone and internet
Entertainment - streaming apps for music, movie and TV series
Fitness - gym or personal training sessions
Gaming - consoles, phone or computer based
Eating out - brunches, lunches and munches
Eating in - takeaway and delivery meals
Coffees
Drinks after work/with friends
Clothing and footwear - online or instore
Live events - concert tickets, performances, plays
Favourite hobbies - surfing, painting, sewing, boating, horses, guitars etc
Pets
Gifts
Home renos or styling
Tech - devices, computers, recording equipment, monitors, sound systems
Books
Vinyl
Collectables
Plants

Honestly this list could go forever, but use this as a prompt.

Also take note of the things you spend money on that you already have multiples of - this could be things like stocking up on make-up when you already have a good supply at home, or books (hey book lovers), or clothing (that never gets worn and still has tags on), or fun toys like surfboards (awesome, but exxy). Check your stock levels and be real that you could probs hold off buying those things until you really need it.

Your mindset

Now we need to talk about mindset. Let's protect that headspace, baby!

First up - articulate why you are saving money and where you will be spending, saving or investing what you save. What’s your goal?

Now that we’ve determined your goal, let’s build a buffer around your headspace and some barriers to entry by ticking off the following:

unsubscribe from marketing emails.
delete shopping apps from your phone altogether or at minimum turn off their push notifications.
replace things only if they're genuinely empty/finished.
reduce your use of social media to 1 hour (or whatever you want) a day to dodge all the sneaky marketing ads trying to make you buy things (download apps that track your phone usage so you have accountability).
for purchases over $ [insert your own amount here] (aside from necessities like groceries or bills) you must sleep on financial decisions overnight.
cut up your credit card and remove its details from any devices or retailer websites where it is stored.
remove your automatically stored debit card details from online retailers and websites you have a tendency to overspend on. That extra few minutes spent plugging in your card details could be enough to make you think twice before spending.

Select an accountability partner

As a kid, why did you brush your teeth every morning and every night before bed? Aside from the fact it’s basic hygiene and y'all should be looking after those chompers, you did it because if you didn’t do it your mum, dad and eventually the dentist would be on your case! That’s the power of accountability.

We need that level of accountability with our money otherwise we will continue to sabotage our efforts when unsupervised. So, choose an accountability friend for your low buy year. Set up calendar dates to meet up and walk through how it’s going. Be intentional and set aside time for accountability.

Choose your low-buy habits

Below is a list of low-buy options - choose the ones best suited to you and create a custom low buy year plan! Choose 3-4 guidelines and try to maintain those for a few months. Then add additional guidelines one by one, so long as you're able to sustain these practices. Sustainability is key.

Clothing, household and entertainment

No new outfits - this is the year of rewearing.
Only buy new outfits only as needed from op shops or Facebook marketplace, Gumtree or even source clothing through clothes swaps with friends.
No new books - this is the year of library borrowing only.
Cancel ________ streaming service, and use either library apps or free to air apps for movies or shows instead.
Arrange discounted/family deals for streaming services with a friend or siblings.
Enjoy time at home with your friends as a way to catch up with them.
Rotate streaming services throughout the year, cutting back to one at a time.
Buy big ticket items like furniture or appliances only when it's:

a) genuinely needed and
b) on sale (peak sale periods include Black Friday, Cyber Monday, EOFY, post-Christmas).

Source free furniture or buy second hand furniture. Make it your own with some DIY.
Join the local toy library for kids, or start a toy swapping circle with friends.
This year is a year to maximise free live entertainment instead of big ticket performances or concerts. See what local events are on, particularly those run by local councils.
When buying make up only buy the items that genuinely need replacing/are actually empty, and look for all potential discounts, cashback options and sale periods.

Gifts

The gift cost ceiling this year is $_____ per gift.
Only buy gifts for immediate family, closest 5 friends, or kids under the age of _____, otherwise write the person a nice card instead.
Message friends and family that there will be no gifts for adults this next Christmas/birthdays - just a big hug and quality time.
Search for second hand gifts at op shops and Facebook marketplace or Gumtree.
Use your skill of ___________ to make gifts for people.

Food and Drink

Only buy coffee on ________ (choose a day of the week).
Only buy take away for dinner on the last ___________of each month.
Buy take away from either ___________, __________ or ___________ (select cheaper options local to you).
Instead of ordering take away, run to the supermarket to buy a frozen meal instead. Better still add a frozen meal to your grocery run each week so it’s already in the freezer.
Do not order sides or drinks with take away.
Bring a reusable water bottle everywhere as your drink of choice.
Make a meal plan for _____ days each week (see our meal planning blog for tips on this).
Only buy beer/wine/spirits on ________ (day of the week).
Buy beer/wine/spirits with a subscription service so you cap your spend each month to $_______, and aren’t tempted to buy more when you go to the bottle shop.
Your grocery spend limit each week is $________.
Order groceries online with a specific budget for click and collect so you aren’t tempted to buy unnecessary items in store.

Travel and Holidays

Instead of a week or weekend away, enjoy time near home - visit local beaches, lakes, bushland, venues or sights (within 1 hour of home).
To celebrate anniversaries or birthdays enjoy a nice dinner out or at home instead of a trip away.
Use as many travel hacks and discounts as possible (check out our travel hacks blog).
Choose to holiday outside of peak periods to dodge overpriced flights or accommodation. E.g. take a beach vacay a month or two after the busy Christmas/summer period.
Get comfortable with cheaper travel options like sleeping in a van, camping, staying in a caravan park or couchsurfing/bunking with people you know.