2021 Frugal finances!

 

So are we going to talk about the year that was 2020? It started with the best of intentions and actually didn't go badly at all in terms of finance. My issue with it was that it didn't go as well as it should have considering how much money I could have saved. 

Allow me to explain. I of course started the year with my budget and a plan. The way the year has ended has not met that budget or plan at all. I did well, but I could have done better. 

Expenses/ expenditure:

• $2000 car repairs
• $800 new fridge
• $600 new couch
• $350 Computer monitor
• $120 printer
• $300? Silhouette machine
• $280 Camera lens
• Bought and then sold a bed (perils of buying without trying) -$300
• $300 rug 
• $800 ipad and apple pen
  

I'm sure there was more but I cant think of them at the moment. Yes, I went on a bit of a spending spree. To be fair most of those things were needs. My fridge I bought the cheapest one that delivered on facebook I could find when I split from my ex and had to have a fridge. It was previously being used as a beer fridge outside on a guys deck and was missing 3 legs...yeah it needed to be upgraded. My couch similarly was being held together by about 4 of the needed 10 bolts and the cushions had been washed and worn to within an inch of their lives, not to mention it weighed a ton and the sofa bed part didn't work. The computer monitor and printer are of course needed working from home items due to Covid (very thankful I got this set up just a few months earlier because I would have been in trouble this year if not for that).

 

Another major occurrence this year was that I paid off my $7000 creditcard debt! Yes, I'm debt free.  

 

Working from home also gave me the chance to save alot of money on parking, petrol and food. You might think that I would lose this come time for the electricity bill but no it was the same as it always is. It also gave me time to think about where I want to go next year and into the future. I of course am always working on craft ideas and selling them online and this time gave me the chance to develop a new skill and business idea. I'm happy to say its going really well! I get about 1-3 orders a week which is better than any of my previous ventures and considering its only been live for 3 months is an amazing result. So those expenses included the silhouette, ipad and pen and much assorted paper. 

 

So where does this leave me for 2021?

Excellent question. My biggest change for 2021 is going back to sticking to a tight budget. I no longer have to live week to week thanks to paying of my debt but I now have to make sure I'm actually saving that money for my next goal of buying a home. This is actually harder than being broke for me because before I could literally not over spend because I didn't have the money. Now I have money so its very tempting to use it. Things that I previously cracked down on such as food, I can now drop down to the shop and get what ever I feel like. That's not good! So I'm looking for ways to either motivate myself to stick too it or ways that others have found to stick to that budget so that I'm not haemorrhaging so much money. 

My main expenses that I budget

• Insurance (contents and car) $130 a year and $42 a month (will be paying both in a lump sum this year.)
  
• NRMA (road side assistance) $11 a month (will also try change to a one off payment)
  
• Electricity which comes out fortnightly for a 25% discount
• Food $150 a fortnight for me and my 6yr old (who eats like its going out of fashion)
  

 

My main tips for 2021

Pay bills annually if given the option as they often give a discount and it means your weekly budget outlook is alot smaller and less chance for payments to bounce causing stress and fines.

Always! Always! Check for a better deal before renewing any insurance. I use Compare the Market which compares several companies and gives you an online discount often. Last year my contents insurance halved just because I changed companies and they were offering a new customer deal. No sense being loyal if they charge you through the nose for it. 

Have auto transfers into your other savings accounts (ING allows 6 linked) for bigger bills you know are coming up. I have one for $40 for clothes (for when we need them), one for car registration thats $40 a fortnight and adds up to $1000 come rego time meaning i can pay it annually saving a heap of money. 

When it comes to food i have several posts on how to save money here. Shop online (helpful during Covid also), know the total before you hit buy and plan your meals so you arent buying more than you need (and check the cupboard for what you already have).

 ***

I cant help much with online shopping because at this point I'm kind of addicted!  Mostly buying things for my etsy store, mmm stationary. 

But folks, if there is one thing that 2020 taught us its that you never know what the year will throw at you so be frugal and save that extra cash, because you never know when a pandemic will hit.

On a side note: A friend managed to save an absurd amount of money this year thanks to Job Seeker, and trust me, they were seeking hard for a job. Correct choice of how to use that money.