Just over twelve months ago, we set a goal to save $30,000 to build our new shed and study. I had an influx of people requesting for us to share how we did it, and as a self-proclaimed nerd and numbers girl I am pretty excited to share this with you!
Before I get started I wanted to clarify a few things – just so you know where this is coming at you from. We began our journey with no other debt other than our home loan. We don’t have credit cards, loans or any outstanding debt on things like cars or department stores.
We also don’t live in a capital city, we live regional. And while distance wise it has its drawbacks – it does afford us to have a smaller mortgage. So please keep this in mind as I know everyone’s circumstances are different.
Everything I am sharing is our own experiences and opinions, but should you want any financial advice please seek this from a qualified financial adviser or institution.
LISTEN: Mamamia Out Loud unpack the cult finance book that has Australia hooked…
For us, rather than loaning money to get something we wanted then and there, we saved and saved so we didn’t have to pay dead money to a bank and wait a little longer to get there. I think it also makes you appreciate it a little more when you know you’ve worked really hard for something and stuck at a goal – so you know it’s really what you want.
But without futhur ado, here are the five things I followed when trying to meet our little goal!
That sounds filthier than it is – I’m talking spreadsheets!
One thing we did once we started this little mission was go through our bank statements for the last three months. We went through every expense we had and categorised everything. This included food, children, entertainment, utilities and household.
Along the way we found costs and expenses we didn’t need to be paying, like memberships and direct debits for things we didn’t need or use. So the first thing we did was cancel all of those.
We also got an insight into what we were spending the most on and we had a bad habit of spending small amounts at the supermarket several times a week. And lunches – lunches were killing us! There were also a lot of WTF moments! Like WTF did I even buy?
Plan your meals/shop
So, I know this one freaks some people out and I absolutely do not mean making little meals for everyday to get buff at the gym.
This simply meant we sat down and planned out a week of meals before we did our shop. As we were spending a lot of money on food every week we decided to try and tackle this. We would pick five recipes for the week and shop accordingly.