There’s an old saying ‘Look after the pennies and the pounds will look after themselves’.
In other words, if you concentrate on saving small amounts of money you will find that this quickly grows into large amounts.
Start using cash for more of your regular spending e.g. lunches.
Set yourself a reasonable budget, say, $10 per day and draw out the cash of $50 at the beginning of the week. When the money runs out you have used up your allocation and yet you will find you are still happy that you got what you needed.
By using Eftpos or credit cards each day you become disconnected to your spend and tend to buy extra things that you don’t really need.
Generally you are no better off or any happier for doing so.
You may find you spend $60 on your lunches just by being less conscious of your spend.
That’s $10 a week that you could have saved or used for something else.
Over a year that is $520 and over five years that’s $2600.
If you find could three areas of spending that you could save $10 each per week that would give you $7800 in five years, which could be used to pay off debt or saved for something special like an overseas holiday.
Set yourself some goals and use cash for designated spending – you will be surprised how quickly you can start making a difference financially.