19th Feb 2015
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Pretend you make less and save
Pretend you make less and save

The recent Reserve Bank of Australia (RBA) interest rate cut will see many living off of fixed incomes with a reduced rate of pay. So, how to make up for the shortfall? One way in which you can get ahead is to trick yourself (and others) that you receive less income than you actually do. And there are some pretty good reasons to do so. 

You won’t spend what you don’t have

The best way to save money is to pretend that it doesn’t exist in the first place. You can have part of your income transferred into a separate account the same day you are paid so that you are not tempted to use it. This way, when you want to add more to your nest egg or go on an overseas trip, you’ll have the coin to get your wish. 

Increase your retirement savings

Depositing more money into your retirement savings is always a wise move, and pretending you have less income can sometimes make it easier to save a bit extra – allowing for the money that you do save to have more time to grow. And you’ll not often hear anyone complaining that they wished they hadn’t saved so much for retirement. 

Pay off debts quicker

Pretending you make 10 per cent less money than you actually do means you can train yourself to cut back on your weekly spend – to better fit in with your ‘pretend’ budget. And that 10 per cent you’re not spending each week can instead go towards reducing or eliminating any outstanding debt you may have. Or you can direct these funds towards your annual holiday or turn some other dream into a reality much quicker. 

Save money for a ‘rainy day’

Having a ‘rainy day’ stash is invaluable for those unexpected emergencies. That way, if you car breaks down, your income dries up or someone in your family needs medical help, you’ll have the funds to see your way through without having to delve into credit – along with the interest that accompanies it – and further increase your debt. 

Less pressure for you to splurge

Fancy restaurants, Gold Class cinemas and weekly manicures are nice, but do you really need to enjoy them each week? We’re not saying to quit on all of life’s little luxuries, but pretending you have less money than you do can encourage friends and family to be more creative with joint activities. If your friends think you are on an economy budget, chances are they won’t assume you have a first-class salary. Instead, going for a walk with someone allows for quality time spent, along with good conversation and an enriching experience, both physically and emotionally. These are things money can’t buy. 

Freeze the ‘human ATM’ account

Some people think that because you have money saved, you then have an obligation to share it with friends and family. If you feel that pressure, it may be wise to pretend you have a little less income than you actually do. That way, they’ll be less inclined to ask for money. If you’ve fought long and hard to reach retirement, then it’s important to make sure you can live out your years well or, at the very least, comfortably. 

Do you have any good money-stretching tips that you can share with other members? Or do you know of any free or inexpensive ways in which to save a buck? Why not share them?





    COMMENTS

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    Pammy
    10th Mar 2015
    11:57am
    Not particularly helpful. Most aged pensioners cannot even contemplate 'fancy restaurants, Gold Class cinemas and weekly manicures' in the first place. Even the occasional coffee with friends is out of reach for many. And is he actually suggesting that we lie to our families?
    Virginia
    12th Mar 2015
    6:07pm
    Its not if you don't smoke, drink to excess,don't use taxis instead of a bus, shop wisely and save all your working life instead of spending every cent. Be responsible if not; no you have to miss out on the coffee.
    Fossil
    10th Mar 2015
    12:18pm
    Your income dries up!!! this is classified as a rainy day for which we have to save for?? INCOME dries up MAN it is going to be raining for a long time..... and we won't be dry!!
    particolor
    10th Mar 2015
    1:00pm
    I love Fudging Figures ! :-) Think Ill run for Parliament next Election !! :-)
    Blossom
    10th Mar 2015
    3:04pm
    A cheap cafe is for a special occasion only. A movie on discount day is a once a year event, or better still wait until it comes out on DVD, then price is reduced. Two or more of you can watch it for the price of one ticket. You can watch it again in the future if you want to. What is wrong of taking turns of meeting each other's places for coffee? For many it is very hard to save a few dollars in reserve for when your fridge is going to "die". It is often cheaper to buy another one that have the old one repaired because labour is so high and so are some parts. At the rate utility charges are going up we won't have spare cash. You get regular electricity and gas account increases. They increase the supply charge so then even if you have used less you often get a higher bill
    particolor
    10th Mar 2015
    4:22pm
    YES !! They charge like wounded Rhino !! :-( They better give us Better than a 2 Bob Pay Rise this time !! Or You can have My Fridge for a Spare !! :-(
    Young Simmo
    10th Mar 2015
    4:30pm
    Yeh, sometimes you have to wonder about our banks. We are 75 and never really got onto the super saving thing, but did have a bit at retirement. We currently have a working account, a savings account Commbank Goal Saver and a $500 Visa Card.
    I recently sent them an e-mail saying the interest rate dropped by 0.25%, (one quarter %) and the monthly interest on our Goal Saver dropped by 17% for the month. They replied with a heap bulldust, commas and full stops etc,etc saying that the interest rate is calculated daily Bla, Bla, Bla. It all became too hard and I dropped it.
    I am wondering if anybody else has noticed a simular CONN.
    Oh Yes, before somebody asks about a $500 limit Visa Card. We started that in 2000 when we first got onto the net and wanted to limit the amount that scammers could steal. As it happens no conns, but we pay it off every pension day and have not payed a cent in interest in 15 years, just the annual fee. Also enjoy the awards free Micro-waves and kettles and toasters etc.
    Cushy aye.
    particolor
    10th Mar 2015
    4:43pm
    What's in Your Wallet Simmo ? A Moth Farm ! :-)
    Young Simmo
    10th Mar 2015
    4:46pm
    IOU's, do you want one?
    particolor
    10th Mar 2015
    5:10pm
    You'll never get it back :-(
    Never a Borrower nor Lender be !!
    Bill Shakingspeare !!
    Young Simmo
    10th Mar 2015
    5:37pm
    OK, I will white out the $1,000.00 so I can use it for somebody else.
    Sorry, opportunity only knocks once.
    particolor
    10th Mar 2015
    7:16pm
    I like Knockers ! :-) But I've never found a thousand Bucks between any of them yet ? :
    Young Simmo
    10th Mar 2015
    7:54pm
    I don't go in between them, I go to the pointy end.
    Yum, Yum.
    particolor
    10th Mar 2015
    8:09pm
    And as the Sun set slowly Between the Mountains, Young Simmo Spurred Himself on ! :-)
    Pamiea
    10th Mar 2015
    9:36pm
    do u guys have to be gross when we are trying to sort out a serious issue. I feel you are frustrated journos who like to see their name in print!! Get real guys.
    Young Simmo
    10th Mar 2015
    9:55pm
    Loosen up Pamiea, when your life is down to something in between 10 minutes and 10 years anything goes. Also my reference to the pointy end was referring to top of QLD, what did your precious little mind think I was talking about?
    Young Simmo
    10th Mar 2015
    10:07pm
    Also I am a retired Milko, Mine Manager and everything in between, so your journo guess was a dumb as your comment.
    Agree Parti ?
    particolor
    11th Mar 2015
    5:51pm
    No !! I think we were Bored for a Moment ! And there's no 0's & X's to play on here ?? :-(
    buby
    12th Mar 2015
    2:57pm
    Well i don't go to fancy resturants, cause they don't cook what i like, and they scrimp more than i do.....So i eat at home, careful where i buy my food from, try not to waste too much.
    and when i'm saving, i put into an account where i can't take it from. I've done it so if i really need to get it out, it has to go to another account, and during the week it takes a day to transfer, but if on friday you will have to wait all weekend to get it.......Hence it stays where it is more than often lol.
    Its a good way to save. I don't smoke, occasionally have a wee dram, and thats about it, and don't go to cinema, i wait for it to come on teli, or get a dvd. but if i dvd worked properly i'd use it....I should have sent it back to china from wence it came not long after i got it, the useless thing. they certainly don't make em like they used too.
    Happy saving everybody :) lol OH and pray the liberals are out by next term before we all going into recession AGAIN?
    Radish
    12th Mar 2015
    4:13pm
    Right from the start when I entered the workforce at 15 I saved every payday. It just became a habit to save and like most others on this site I would imagine, I paid cash for everything, I remember once putting a swimsuit on LayBy and that was the one and only time. On a rare occasion I would buy a sandwich or something for lunch but most of the time I took my own.

    I did not purchase a lot of clothing and everything owned fitted into one suitcase when I went overseas at 24. Fortunately I worked in an organisation where a uniform was provided.
    particolor
    12th Mar 2015
    4:58pm
    Those Texas Road Gang Uniforms are Good aren't they ? :-)


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