WITH statistics showing more than 60 per cent of people are living week to week, there are some simple ways to save money.
IF YOU have an emergency experts say there should be at least $10,000 in the bank as a contingency fund.
But with that concept being a dream for many, the thought of having an emergency stash on top of other savings can be daunting and overwhelming.
One wealth expert says it doesn’t have to be, and has shared his tips on how to not only get that chuck tucked away, but to do it pretty quickly.
Jackson Millan, a wealth education expert and business adviser, says you have to define your surplus by completing a personal profit and loss statement and not a budget.
“A budget presupposes you are going to take all the joy out of life, eat Cornflakes for dinner and you are unlikely to stick to the course,” he explains.
“A personal profit and loss is a lifestyle decision to understand what your life costs and what should be left over at the end of the week.
“Take your surplus off the table immediately and pay yourself first. Don’t wait until after you spend to save.
“You should be saving first and living on what is left.”
Mr Millan, who runs The Wealth Mentor, says assuming you have a surplus of $12,000 a year in your personal profit and loss, set up an automatic transfer into an unlinked account you don’t have access to online or via card on payday.
That should already get you to $3000 in 90 days.
“Sell stuff you don’t need or haven’t used in the last six months, whether that be clothes, electronics, unwanted gifts from Aunt Penny,” he says.
“Chuck it all on eBay or Gumtree and I am certain you have at least $3000 lying around. We are now two thirds of the way there.”