Tiresome tips: The savings advice we love to hate
Research by Finder shows certain pearls of wisdom just don’t hit the mark. One in two Australians say the most annoying piece of savings advice is being told to cancel their TV subscription services. The next pet peeve – reported by two out of five people, is being told to take care of their own grooming needs at home, presumably saving on the cost of a trip to the beauty parlour.
All these responses are fair enough. Sure, it pays to sweat the small stuff. But not many people build personal wealth on the foundation of giving up Netflix. And there can be ways to lower costs without feeling deprived – like sharing a TV subscription account with friends and family.
On the flipside, the most appreciated savings advice, cited by 77% of Australians, is recommendations to cook at home instead of eating out or ordering takeaway. Tips to track spending is another favourite (74%), and happily there are plenty of free apps to do just that.
One piece of advice that has stood the test of time is the value of setting a budget. On one hand, budgeting confronts us with just how much money slips through our fingers – and how little we often have to show for it. But that’s the whole purpose – getting the jolt is good for us.
Budgeting also encourages us to take a controlled approach to spending and saving, enabling us to reach short, medium and long term goals, which might otherwise never be more than a pipedream.
The beauty of budgeting is the freedom it provides to allocate money towards 'fun' expenses, without feeling guilty or thinking that you're putting your financial future on the line. It’s also a tool to break free from the stress of living pay day to pay day – something that’s a reality for 21% of Australians according to Canstar’s Consumer Pulse report.
Long story short, I’m a fan of budgeting. It lets you see where your money is going, and where you can cut back on the least necessary areas so there is something left over to save. At that point you’ve got control of your money, and it’s a lot easier to have control of your life.
Paul Clitheroe is Chairman of InvestSMART, Chair of the Ecstra Foundation and chief commentator for Money Magazine.
For more information on saving for the future click here:https://www.investsmart.com.au/what-we-offer/wealth-planning
Frequently Asked Questions about this Article…
Canceling TV subscriptions is often seen as annoying savings advice because it feels like a small sacrifice that doesn't significantly contribute to building personal wealth. Many people believe there are more effective ways to save without feeling deprived, such as sharing a subscription with friends or family.
Popular and effective savings tips among Australians include cooking at home instead of eating out, which is appreciated by 77% of people, and tracking spending using free apps, favored by 74% of respondents. These methods are seen as practical ways to manage finances without major lifestyle changes.
Budgeting helps manage finances by providing a clear picture of where money is going, allowing individuals to cut back on unnecessary expenses. It encourages a controlled approach to spending and saving, helping to achieve short, medium, and long-term financial goals.
Setting a budget offers the benefit of financial freedom by allowing individuals to allocate money towards 'fun' expenses without guilt. It also helps break the cycle of living paycheck to paycheck, providing a sense of control over one's financial life.
Cooking at home is a favored savings strategy because it significantly reduces the cost of eating out or ordering takeaway. It is a practical and effective way to save money while still enjoying meals, making it a popular choice among Australians.
Tracking spending can improve financial health by providing insights into spending habits, helping individuals identify areas where they can cut back. With the availability of free apps, tracking expenses has become easier, allowing for better financial management and savings.
Budgeting can reduce financial stress by offering a structured approach to managing money. It helps individuals avoid living paycheck to paycheck, which is a reality for 21% of Australians, and provides a sense of control over financial decisions.
Budgeting is considered timeless financial advice because it consistently proves effective in helping individuals understand their financial situation, control spending, and achieve financial goals. It provides a foundation for financial stability and freedom.
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