Seven tips to be richer this time next year

These seven tips should see you be richer in a year's time.

Person holding multiple 100 dollar notes

Our seven tips for getting richer in 12 months’ time will require some sacrifice, but just think how much better you'll feel when you check your savings this time next year. Here are seven suggestions that will make you richer by 2017. 

1. Eliminate three unnecessary expenses
The easiest way to save money is not to spend it in the first place. For those living on the Age Pension this is not as simple as it sounds. Or is it? 

Focus on your finances; rifle through your bank statements and choose three non-essential expenses that you are currently paying on a regular basis. Now get rid of them. 

The expenses you eliminate could be along the lines of reducing your mobile phone plan, having lunch at home or cancelling your newspaper subscription and reading it online instead. Eliminating these types of costs will free up more money for things, such as savings and investments, or a holiday. 

2. Shop without your credit cards
Next time you go shopping, remove the credit cards from your wallet and use cash only. The ways in which you’ll save are threefold:

  • you’ll only spend the money you have in your wallet
  • you’ll save on interest – especially if you can’t pay off the balance before it’s due
  • you’ll save on credit card fees. 


3. Don't take on new debt
Just as the easiest way to save is not to spend, the same applies to debt. If you don’t want to be in debt, don’t take on any more debt, and pay off the debt you already have. 

And even if you’re struggling to pay off your current debt, by avoiding new debt and making minimum monthly repayments on your existing debt will get you out of the red, eventually.

4. Switch your credit cards to zero interest cards
If you have a significant amount of credit card debt, why not take advantage of a credit card that charges zero interest for 3, 6 or 12 months? Many credit card providers offer zero balance transfers on existing credit card debt, so take advantage of this generous offer and pay off the principle as much as you can whilst being charged no interest. It will absolutely get you out of debt a whole lot more quickly. 

5. Cut living expenses by 10 per cent
Cutting out expenses altogether can be difficult for some, but if that’s the case, try reducing your spending by 10 per cent across the board. 

Obviously some expenses can’t be reduced, such as rent or mortgage payments. But there are other ways to save on groceries, food, entertainment, utilities, fuel, and insurance by 10 percent or more. 

6. Save 10 per cent of your income each month
Once you’ve reduced your spending by 10 per cent, try also saving 10 per cent of your monthly income. That way you’re doubling down, and will be 20 per cent (or more) better off at the end of each year. 

You can divert this extra money into a savings account, and eventually move into mutual funds or other investments.

And whilst it may not feel good cutting back on so much of your everyday spending, the feeling you’ll get at the end of the year when you look at your savings account will more than make up for it. 

7. Sell or donate everything that you have that you no longer use or need
Have you got a pile of things laying around your home that are just not as useful as they once were? Why not sell them?

Not only is it one of the quickest and easiest ways to raise money, but it’s also incredibly liberating to de-clutter your house and your life in general. 

You may even find that much of what is around your house could be worth hundreds or even thousands of dollars, especially if it’s in good condition. 

Do you have any suggestions for how to be richer in 12 month’s time? Why not share them with our members? 

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    COMMENTS

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    Old Geezer
    23rd Dec 2016
    10:35am
    Retirement is a time to spend your savings not get richer. It makes no sense in being the wealthiest person in the graveyard.
    Oldman Roo
    26th Dec 2016
    11:38am
    OG , Why don,t you apply the same philosophy on the wealthy and your friends , the LNP Politicians , who all try their hardest in tax minimisation and enriching themselves .
    Radish
    26th Dec 2016
    6:48pm
    Totally agree. I know many who lived on the smell of an oily rag in retirement only to die and leave to children who were spending it like water once they got their hands on the money.

    If you are fortunate enough to have built up your super...spend it...that is what it is for.
    Oldman Roo
    30th Dec 2016
    5:48pm
    Radish " F " , What is really more important in advanced age is that the person is happy and comfortable with his life , which sometimes includes hoarding or financial decisions the younger generation does not understand .
    There are also those , including myself , who worked hard in their life , including weekends and nights , depriving their children of many pleasures they would otherwise have experienced as a family unit .
    For this reason , I want to leave my savings to my son as compensation for missing out on so much in his younger years .
    Of course now with the severe cut in part pension , I feel a fool who has achieved nothing but the instigators of these cuts will also find out one day that they have destroyed the spirit to work hard and be productive , which are needed for a countries success ,
    Not to forget the loss of credibility in our Politicians .
    particolor
    23rd Dec 2016
    11:10am
    Drop the Phone & Internet
    Turn off the Power!
    And cut the Food Bill 50% ... The only way I see out of this Poverty !! :-(
    And that's my New Years Revolution Folks :-)
    BYE !!

    23rd Dec 2016
    11:38am
    An early election to oust Turncoat and Crew before this time next year would put a few bucks back in all our pockets.
    Old Geezer
    23rd Dec 2016
    12:19pm
    Ha ha you have to be joking. Labor will just take a lot more.

    Looks like Abbot will be back soon too if the pundits have got it right.
    particolor
    23rd Dec 2016
    12:25pm
    I thought he went to Canadia ? :-)
    Jannie
    23rd Dec 2016
    12:44pm
    Not sure about that Fast Eddie all pollies are the same, and if labour gets in our debt will increase, they give too many handouts. Our government has to stop giving money to the refugees and overseas donations. Also pollies to get the same pension we all do.
    particolor
    26th Dec 2016
    7:38pm
    I love people who live in Cloud Coo Coo Land :-) :-)
    But we can Dream cant we ? :-)
    Rosret
    23rd Dec 2016
    12:20pm
    That's not getting richer that's just ways to stop you getting poorer!
    I need investment tips. Apparently you can get 6.5% return on investing in solar installations for large factories. I must look into how that is brokered.
    Anyone else got a tip?
    Anonymous
    24th Dec 2016
    10:45am
    Sounds very risky to me and not much of a return for the risk you can do better than that just by buying bank shares with the franking credit the rate is generally better than 8% and they are much safer.
    PlanB
    27th Dec 2016
    7:09am
    The bigger the interest the bigger the risk --- good interest is very hard to get these days, so look long and hard -- better to be sure of half a loaf than unsure of a full loaf
    BtL
    23rd Dec 2016
    1:37pm
    In relation to suggestion 7, if you have "a pile of things laying around the home", keep them and eat what they lay.
    Sigh! I'm fighting a losing battle to save the word "lie" from extinction in Australia (it has gone in the USA).
    musicveg
    23rd Dec 2016
    2:00pm
    Here is my tip, grow your own veg and herbs, it is crazy people spend money on some greens that grow like weeds. Feed them with your vegie scraps and give them enough water, so easy in pots or a plot. It always shocks me to look at the greens and herbs that are half dead in the supermarket and what they charge. I am even growing my own herbal tea, anyone for a Lemon Verbena?
    Old Geezer
    23rd Dec 2016
    2:13pm
    It is so easy to dry herbs in the microwave if you have too many for use later. Oregano is a good one for this.
    musicveg
    23rd Dec 2016
    2:49pm
    I just hang them up. I have way too much oregano it grows like a weed in my garden.
    Old Geezer
    23rd Dec 2016
    3:29pm
    Any ideas on drying turmeric?
    Anonymous
    23rd Dec 2016
    3:59pm
    OG, try tumericforhealth.com>general-info.
    Old Geezer
    23rd Dec 2016
    4:03pm
    Thanks it's a longer process then drying herbs.
    Radish
    26th Dec 2016
    6:51pm
    Cooking your own food from scratch; doing it in bulk, freezing meals...you can live very well and cheaply.

    Clothing...who needs a lot in retirement. Plenty of op shops which sell quality clothing...lots of new stuff donated by shops.

    You can stock your kitchen with cutlery, glasses, crockery for very little money.

    Lots of good secondhand furniture.

    Nah, there are heaps of ways to save money if people could be bothered.
    Old Geezer
    28th Dec 2016
    11:18am
    My family regularly tells me that nothing matches in my kitchen as I get it all from op shops.
    johnp
    23rd Dec 2016
    4:55pm
    I like Rosret's idea.
    Re
    ""Apparently you can get 6.5% return on investing in solar installations for large factories too ""
    I would also like to know about that !!
    Radish
    26th Dec 2016
    6:53pm
    That is absolutely correct. An article on it was on TV today and I have read about it.

    The one I read about was fully subscribed within 48 hrs so I believe.

    Put in a google search

    " 6.5% return on investing in solar"
    LiveItUp
    27th Dec 2016
    11:36am
    I've seen many of these come and go over the years. Good to start but as every one gets on board they drop their standards and people get caught.

    Not for me.
    Cheezil61
    23rd Dec 2016
    5:23pm
    Surely this is a joke read for Christmas; how is any of this even possible on a low income or with a mortgage still needing payments (after divorce etc) when those powers that be are doing everything to break workers & attack superannuation & pensions! Agree with Fast Eddy on this one! Only ones who can save/put money in bank are pollies on their greedy incomes & pensions!
    particolor
    23rd Dec 2016
    5:28pm
    TRUE !!
    Renny
    23rd Dec 2016
    7:46pm
    Totally right. People on just the agen pension are struggling. It's wrong.
    particolor
    24th Dec 2016
    12:51pm
    I'm Lucky !!:-) I've only got 3 & 1/2 days to sit it our now till Pension Day !! :-)
    Broke as a Stone I am !! :-(
    MERRY CHRISTMAS YA ALL :-) :-)
    musicveg
    24th Dec 2016
    1:09pm
    My mum phoned me yesterday and I had to give her some money to tied her over because the local Centrelink agency told her she would get her pension on Friday, they actually had a printed out list stating this, so the poor lady at the agency (only one person office) had to feel bad for Christmas because she had told everyone the wrong dates. And it was too late for any emergency money, not like the old days when you could get a counter check the same day.
    particolor
    24th Dec 2016
    1:26pm
    Same here musicveg !! :-( And all I said as I walked away from the Auto teller Penniless was .."I hope a Bird of Paradise fly's up Mals Nose !! " :-) :-) :-)

    Don't anyone Kid Themselves, all they care about nowadays is themselves, and their future Prosperity :-( :-( And to their Stooges.. They don't care about You Either :-( All your doing is the Devils Work for them :-( :-(
    musicveg
    25th Dec 2016
    12:55pm
    Following up on my comment about money for Xmas, my mum decided to check her bank and her payment actually did go in on Friday despite Centrelink telling her otherwise, the poor lady at the agency got stressed for nothing too. So particolor it is worth checking your bank.
    particolor
    25th Dec 2016
    1:13pm
    Thanks for that :-) I checked at 9.30 on Friday Morning, NOTHING :-(
    I muttered something and went home :-( I haven't been Back !! I don't even know if its worth it now ? ? Might!! Look later. But No usually means NO with that lot :-( :-(
    Wednesday will come soon enough I suppose !!:-)
    musicveg
    25th Dec 2016
    1:55pm
    My mum went in the afternoon, so don't know if that makes a difference.
    particolor
    25th Dec 2016
    2:36pm
    Glad I found you here again in Email, as I forgot to leave a Shortcut !
    SHOCK ! HORROR !! I ventured down and it was there !! Thanks again for that ! I think it went in late :-) As I saw several Disgruntled Remarks about it on another Site !! Language Unrepeatable on here !! :-) :-) :-) I think the Guv was Embarrassed by it ? :-(
    And now the Good Part ...I live in a Country City and not a Single Shop was OPEN !! :-( :-( I drove almost out of town and found a Service Station Open, got Milk Etc. Happy now :-) :-) :-) Thanks Again and MERRY CHRISTMAS !! :-)
    musicveg
    25th Dec 2016
    2:48pm
    That's great news, so glad your day was made that little bit brighter, you can stock up tomorrow at least. Happy Christmas to you too.
    particolor
    25th Dec 2016
    2:54pm
    Yes !! Town Deserted ?? Anyone would think it was CHRISTMAS DAY ?? :-) :-)
    Golden Oldie
    23rd Dec 2016
    6:36pm
    I don't buy newspapers anymore, even given up the Weekend Financial Review back in 2013. However a lot of Facebook posts are directly from newspapers which only allow you to read a limited amount of articles and then they expect you to subscribe to them. Advice on reading online is not practical if you want to read all of the paper. I don't, as I don't want to pay for The Herald Sun, Sydney Morning Herald, The Australian, Financial Review, The Times and other papers. Not impressed with their reporting biases.
    Old Geezer
    23rd Dec 2016
    7:17pm
    Jut clear you cookies or open the articles in another browser.
    particolor
    23rd Dec 2016
    7:39pm
    I cant afford Cookies :-( I wish they'd stop showing them to me :-( :-(
    Renny
    23rd Dec 2016
    7:47pm
    Read some of the alternatives like AIM or the Guardian or the anew Daily. Tgeyrechsppy with an occasional small donation.
    Retired Knowall
    24th Dec 2016
    6:35am
    I disagree re shopping without a credit card.
    A credit card used correctly is a great financial management tool as it allows you track ALL your spending via the monthly statement. I use my card for 95% of spending and when the statement is available I download it into my Budget XL form. That way I get to see where my spend has been and how the actual is tracking against budget. Have used this for the last 20 years.
    I guess it's not for everyone, discipline is needed.
    LiveItUp
    24th Dec 2016
    10:09am
    I rarely use cash instead use my credit card for evrything. It costs me nothing but the rewards are good in that we get a free flight to somewhere in Australia or NZ every year.

    I find if I haven't got cash I spend less.
    PlanB
    25th Dec 2016
    8:47am
    A credit card used right SAVES your money as it allows you to keep YOUR money getting interest till credit card is due to be paid ON TIME --- have a rewards card and use it right that way it pays for your yearly fee AND gives you some cash back as well, plus you have a list of everything you spent on, unlike cash -- unless you keep EVERY receipt.
    Yes always try and save a % of your weekly or monthly wage -- pension -- don't buy for the sake of it --
    particolor
    25th Dec 2016
    12:07pm
    I'm Safe !! :-) I cant spend Anything till Wednesday !! :-(
    LiveItUp
    27th Dec 2016
    11:39am
    Ask your bank nicely and they might waive your yearly fee too.
    PIXAPD
    25th Dec 2016
    9:35pm
    Have no debt, owe nothing, and you'll save thousands, even from the aged pension a person can save up to $7000 a year, simple
    particolor
    25th Dec 2016
    9:50pm
    And the Cow jumped over the Moon !!:-) :-)
    particolor
    26th Dec 2016
    7:34pm
    If I Banked 7 Grand a year Id be in Debtors Court !! And then Id have to Hide my 7 Gorillas !! :-) :-)
    LiveItUp
    27th Dec 2016
    11:42am
    Agree people spend too much on stuff they don't need.

    I've decided I don't need anything so there will be no after Christmas shopping for me.
    particolor
    27th Dec 2016
    1:54pm
    What's this ? The "BAH HUMBUG CLUB" ? :-)
    Old Geezer
    28th Dec 2016
    11:20am
    I just had an awesome Christmas that cost me nothing.
    PlanB
    28th Dec 2016
    11:25am
    Me too OG