How to save $5000
How I did it: I think the most important thing I've done is to sacrifice things. I'm sharing accommodation, living below my means, walking and cycling most places, finding substitutes for things I enjoy or usually spend a lot of money on, thinking more before I do spend any money on purchases, and often simply going without.
It also helps to have a goal in mind. I haven't simply decided to sacrifice a lot of things I enjoy (going to cinema, concerts, dining out etc) for the sake of being a scrooge. I plan to do some things I've been wanting to do for a long time, but never could because I did not have enough money - the first goal is to travel.
To make it easier, I have a joint bank account/savings account which lets me set up an automatic fortnightly transfer. So it goes straight into my savings account when I get my pay. Sweet.
Lessons & tips:
- Try going without. If that fails then:
- Find substitutes for things you think you can't live without.
- Set up a bank account that automatically transfers a small amount of money into a savings account after each pay day. Every month or so, aim to increase this amount.
- Live below your means.
- Have a goal in mind. Force yourself to think about this goal every time you feel the need to spend money.
