4 Ways to Save Money in 2015

While New Year celebrations are now a distant memory, the resolution you set yourself to get into financial shape for 2015 might still be at the forefront of your mind.

Whether you’re looking to save money for a special occasion, the trip of a lifetime, or you just want to pay off some debts – here are 4 simple ways to save money in 2015.

01. Get up-close and personal with your bank balance.

This may sound like a very simple step, but it’s one that people frequently overlook. Take the time to get to grips with exactly how much money comes in, and goes out of your bank account on a monthly basis. By doing this you can see if you are spending too much every month, and where your money goes.

Saving is simple – spend less than you earn. So if you do come to the realisation that you are taking out more than you put in, look at where you can make cuts.

For example, if you add up the numbers and realise you are spending $300 a month on buying lunch and coffee every day – maybe it’s time to start taking a packed lunch into work a couple of times a week.

The best way to keep on top of your finances is to create a budget. There are lots of apps you can use, or keep it simple and create a spreadsheet on your computer.

02. Sort out your savings

Setting a savings goal for yourself can really help motivate you to keep going. The easiest way to save is to set up an automatic payment to your savings account that transfers money as soon as you are paid. If you can’t see the money in your every-day bank account, it’s harder for you to spend it.

Here are some different types of savings goals you may want to consider:

1. Long Term Goals: these are savings goals you want to achieve in the next five years. This could be saving up for a deposit to buy a house or paying for your child’s education.

2. Short Term Goals: these are savings goals you want to achieve within the next 1 – 2 years. This could include saving up for a holiday or to pay off your credit card debts.

03. Consolidate your debts

Debt consolidation is a smart way of tackling a growing pile of debts. Debt consolidation is when you take out a new loan to pay off all existing debts, leaving you with one simple payment to make every month. This option is recommended if you have several credit cards – you can consolidate the debt into one personal loan, which is often at a much lower interest rate.

One option for homeowners could be to consider refinancing your home loan for a better interest rate. Shop around and find a more competitive rate or lower fees – this will help you save money in the long run.

04. Audit your other financial products

It’s likely that you make regular payments towards other personal finance and insurance related products, such as health insurance, home loans and credit cards.

Take some time to review all of your personal finance outgoings and shop around for better deals, more product features and lower rates of interest.

Top tips for getting a better deal include:

• Visiting internet comparison websites
• Changing your existing policy, or finding alternative products
• Investigating other financial providers

Sorting out your finances doesn’t have to be hard. Make 2015 the year that you clear your debts, start saving money and get on the road to financial security.