How To Snowball Your Leftover Dollars


tonic_MONEY_SNOWBALL_shutterstock_323453342.jpg

I’m a single mother and my daughter has just moved out of home. The past few years have been tough and people keep telling me now it’s time to focus on me and my future. The fact is, though, I still don’t have a lot left over at the end of each week, so what’s the point?

– Jane, 55, Brisbane


It sounds as if you feel exhausted and when you are exhausted, it can be hard to focus forward but it’s essential that you do. You say, “There’s not a lot left over, so it’s not worth worrying about”, but it is worth worrying about. You have a surplus and, regardless how small the amount, you can do something with that. If you add to that surplus bit by bit, there will be a snowball effect. Here’s how’s to do it.

  • Go through your expenses and, without any value judgment, track where the money goes.

  • Identify the things you are spending on that aren’t of much benefit. Look at the energy consumption of your appliances. Perhaps a more energy-efficient appliance could save you money by delivering lower energy bills. My mum’s energy company even offered her a 40 per cent discount off a new, more efficient fridge. Low income earners should check out the government-supported website nils.com.au which assists with the purchase of essential household items such as a new fridge. These are “all gain, no pain” savings. Look at where you are wasting money. One example might be bottled water – just fill up your drink bottle with tap water instead. Look for other small savings that, over weeks and months, can add up. For instance, subscriptions like Foxtel, Netflix and other streaming services may seem like a small amount each month, but can add up to quite a lot each year. Also look carefully at your insurance policies. Now your daughter has left home, you may be eligible for a cheaper premium because your current policy may include an incremental cost for your child.

  • Get into the habit of thinking about things you can borrow rather than buy. You don’t need to buy new household tools if you have a friend who can lend you what’s needed. The same goes for books, and magazines – these are available from your local library. There’s also an amazing array of online film and music content on offer as a result of COVID-19 restrictions.

  • Take another look at your earnings. Is there anything you can do to increase your income? Depending on your field, if you upskill you may potentially get a 10 to 20 per cent uptick in income.

  • Together, these small steps can significantly boost your weekly surplus. The next step is to make sure you invest it. Don’t just put it in a bank account. When you are in your 50s, putting money into your super is the way to make it work harder for you.  


By Kate McCallum, financial adviser and author of The Joy of Money; multiforte.com.au


Email questions to hello@tonicmag.com.au

The information provided is general information and not personal advice. Tonic is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information we publish relates to your unique circumstances. Tonic is not liable for any loss caused, whether by negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by this website.


 Photo_ Shutterstock






Kate McCallum

is a financial advisor and co-author, with Julia Newbould, of The Joy of Money.

Previous
Previous

Colour Me Inspired

Next
Next

“Help! My Husband Isn’t Interested In Sex Anymore”