Eat, sleep, work, repeat. You might complain about it today, but what happens if you wake up tomorrow and there’s no job to go to?

You’ll be fine, because you’ve got savings, right? Judging by the nervous laughter I’m guessing no. And you’re not alone … But you’re nuts if you don’t start trying to squirrel some away for a rainy day! Here’s how it’s done. “Living within your means”. Yep, simple. Don’t like it? Increase your income! And while you’re figuring out how to boost what’s coming in, let’s get smart about reducing what’s going out:

  • QUESTION YOUR BILLS. Can you decrease your usage? (Eg. cheaper phone / internet plan) Or cancel some services altogether (eg. Foxtel). Can you get a better deal by switching providers?
  • MODIFY YOUR INSURANCE. Bundling home, contents and car insurance can save you up to $500 a year. Also, ask your insurer for advice on increasing your vehicle excess to reduce your premium.
  • REDUCE ENERGY CONSUMPTION. Be diligent about minimising wastage. Switch to more energy efficient appliances where possible eg. LED lights, Solar Panels etc.
  • REDUCE FOOD CONSUMPTION. You could try going vegetarian for a month. Make your lunch instead of buying it every day. Avoid eating out as frequently.
  • PAY OFF THAT DAMN CREDIT CARD! Stop spending more than you earn. If you can’t afford it yet, don’t buy it yet!
  • USE COUPONS. Those discount fuel voucher savings add up over the course of a year.
  • STOP BUYING EXPENSIVE GIFTS. A sincere handmade card and a thoughtful inexpensive gift will be more precious to the recipient anyway. You could limit birthday party attendance to close friends exclusively. Start budgeting for Christmas now, and stockpile gifts throughout the year when items are on special.
  • PAY A LITTLE BIT EXTRA OFF YOUR MORTGAGE. Every extra dollar you throw at it brings you closer to owning your home and freeing up your salary.

In a nutshell, you need to trim the fat. Penny counting is the same principal as calorie counting – the more ruthless you are, the quicker you’ll see results. Ask yourself prior to every transaction, does this item fit in the ‘Needs’ or the ‘Wants’ column? Pretty soon you’ll have enough surplus cash in the bank to tide you over in case you lose your job. Your new mantra is eat, sleep, work, SAVE, repeat.

But how long can you keep this up? Abstaining from life’s little indulgences is bound to wear thin after a while. Which brings us back to the other way to live within your means. Increase your means. If you haven’t figured that part out just yet, it’s ok, because we have. We know that thriving in the modern world requires more than just a day job. We also know that all work and no play will burn you out. That’s why we specialise in creating passive income streams.

In our experience the best way to do this is with Investment Properties. They supplement your income, produce capital growth, entitle you to tax breaks, and provide a safety net if life throws you a curve ball and you find yourself without work. You see, the danger of owning just one home and relying on one source of income is if you find yourself unemployed, you run the risk of losing the house. But when you have investment properties, you always have options. So when you’re tired of the penny counting method, let’s talk. Having your fingers in many pies means you’ll never go hungry.

*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.

PEB Group is a complete property advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer service in - Financial Planning · Finance Broking · Property Management · Property Sales · Property Investment · Development

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