Want to save money and better budget? These are the main takeaways from our financial Q&A blog

From groceries and gas to utility bills and mortgages, the cost of living has risen and many Australians are finding it difficult to stay ahead.

We brought together three professionals across the business, food and finance sectors to offer their penny-pinching tips.

In our Q&A blog, ABC business reporter Emily Stewart, author of four money-saving and frugal lifestyle books Jody Allen, and Lody Stewart of Financial Counseling Australia answer your budget and savings questions.

Here are the biggest takeaways from the blog.

When you get paid, separate your money into separate ‘buckets’

Some of you say that when money arrives in your bank account, you tend to spend it right away.

So how can you change this?

Ms Stewart says it’s all about breakups.

“When you get paid, split your money into separate accounts, or ‘buckets’, it’s for different things,” he said.

Separate your paychecks by shuffling money into separate accounts.(ABC News: Andrew Harrison)

If you can, Ms Stewart says to save a little savings there for events like Christmas, New year and birthday – when we all tend to buy more groceries.

“If you’ve budgeted money for grocery shopping, then every time you get paid, put the money into a separate bank account that has a low- or no-fee debit card.”

He recommends writing the words “just groceries” in bold on this card, so you’re reminded what it’s for.

“You should check from time to time to make sure you’re putting enough in your grocery ‘bucket,'” she says.

Unrealistic time frames and limiting fun is a budgeting error

An audience member asked what budget-related mistakes do experts see people making?

Stewart says the three most common mistakes are:

1. Having an unrealistic budget and destined to be difficult to achieve

For example, save $8,000 at the end of six months.

Not only are budgeting goals like these unclear, they can also be unrealistic and difficult to achieve given the changing speed of the *wild movement* of things.

Your own situation will never be the same as the next person’s.

Make sure you consider your personal lifestyle, values ​​and money goals in developing a budget.

2. Having a budget that takes too much time to track and maintain

As noted above, Ms Stewart says “bucketing” is one solution to this.

Each time you get paid, set aside money in a separate account that you need for regular bill payments, such as rent, telephone, health insurance, etc. You should also set up automatic payments for this.

3. Not budgeting for a little fun

Ms Stewart says people have to accept that they tend to have a bit of a splurge once in a while, and that’s normal.

Whether it’s going out to eat or buying clothes, your budget needs to accept this, while keeping it in check.

“I limit my income to 10 percent of my weekly net income, which isn’t much but it worked for me,” he says.

Splurge once in a while is normal but make sure there are limits to this. (ABC News: Andrew Harrison)

Set the air conditioner to 18-20 degrees Celsius in winter and turn off the console to save energy

Ms Stewart says there are many ways to reduce energy use:

• Set the temperature on your air conditioner to 18-20 degrees Celsius in winter
• Turn off the computer and game console on the wall when you don’t use it
• Switch to low energy LED lighting. Some state and territory governments offer renters discounts on energy efficient lighting, but you should contact your landlord
• If you can, replace old, inefficient equipment with new, energy-efficient ones. Your state or territory government may offer a discount or discount if you do this
• Check that you have the best plan and that you receive all energy rebates and concessions you are entitled to from your state or territory government

Ms Stewart recommends using energy.gov.au which allows you:

– Compare offers from electricity and gas retailers

– Find guidance on how to reduce your energy bills, rebates and concessions

Save on groceries at unit prices and replant purchased vegetables

Many of you want to know how to save on groceries, especially if you are on a vegetarian diet.

Stewart suggests unit prices. It’s not as scary as it sounds.

“Unit price is a great way to compare different brands but also different sizes,” he said.

“It’s on the label and it’s called ‘price per 100 grams’ or ‘price per liter’.”

Unit pricing is now required in Australian supermarkets.(Sarina Locke: Rural ABC)

Stewart says larger sizes tend to be less expensive, so you can buy some staples like rice or flour in bulk. As for the rest, you can choose a smaller unit.

Ms Allen also recommends “regrowing” the vegetables you have purchased.

“Onions, potatoes and celery can all be replanted easily,” he says.

Start your savings by setting aside 10 percent of your salary

We had an audience member tell us he had just started his first full-time job and wasn’t sure what percentage of his salary he should save.

Stewart suggests starting with 10 percent.

“You can always build it from there,” he said.

“This is an option when you’re not sure where to start.”

Having trouble managing debt? Consider consolidation or partial abandonment

We had audience members tell us they had $78,000 in unsecured debt.

While they have financial distress arrangements, they will end up, leaving them struggling to make payments.

Ms Stewart said the options available to people in that situation depended on who is their lender? and their personal situation. They include:

• A variation of long-term difficulty in which payments are permanently reduced and there are no further additional interest, fees and charges (or deductions)
• Partial waiver, or debt reduction, and affordable payments so you can pay off the reduced debt in a reasonable time
• Consolidate debt, such as personal loans, credit cards and home loans so that your total payments are lower
• The combination of these and other actions

Missed Q&A?

Look back at the discussion here.

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