How Mike and Helen Increased Their Savings By Over $15,000 a Year

This is part three of our budgeting series, showing you step by step how to take control of your money and get on track for a stress free retirement. If you missed them, links to Part 1 and 2 are below.

Part 1 - Busting Budget Myths

Part 2 - 9 Tips To have You Saving Like a Pro

Thanks Mike and Helen for allowing me to share how you saved more than $15,000 per annum, using our "9 Pro Tips".  Mike and Helen are super determined to build some new habits now so they can remain living the good life well in to retirement.
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They are showing us all how to get it done!!

Compare and switch mortgage providers

Do not think that Banks reward loyalty. In fact, the opposite is true. If you have not reviewed your mortgage in the last 3 years, chances are you are paying too much. Rates can vary by as much as 1.5% between lenders.

Mike and Helen saved 0.66% on their $400,000 loan, so savings of $2,640 per annum.
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(So, you rent, I hear you say. Do you really need all the bedrooms you have or would a smaller place work? Even if you cannot rent cheaper, could moving closer to work save on transport costs. Reducing rent by $40 per week is $2,000 per year).

Compare health insurance

​Mike and Helen used the hospital options a bit, but they didn’t use the extras much. They did a comparison, changed their plan to incorporate only what they need and are saving the difference. They also changed the excess from $250 to $500.
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Total savings from now on will be $2,340 per year and Helen tells me it took less than 10 minutes to compare, switch and save money!

House and car insurance

​Mike and Helen did a complete audit of their property and car insurances. They did some shopping around and decided to stay with their existing insurer. 

​By adjusting their existing policies however, they saved $640 and feel they still have all the coverage they need.

Groceries

Helen admitted that a lot of the groceries she bought didn’t get used and ended up in the bin.  She sourced an amazingly simple menu plan online, only buys what she needs for the plan and now gets out of Coles as quickly as she can. 

Estimated savings, $100 per week, $5,200 per year.
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Great going Helen!!

Phone and internet provider

They have always been with the same, large provider.  They were able to get a similar contract for 2/3rds the price.  They also got rid of the home phone, because they couldn’t remember the last time they used it. Because they owned their mobile phones, they were able to switch to another provider with no hassle. 
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Savings - $1,260 per annum.  

Know and claim work expenses

They began tracking work and investment related expenses. Things like laundry, courses, travel, computers, phones and some meals could be claimed, because of their jobs and investment portfolio.
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Savings: Estimate $960 per annum tax back.

Clear subscriptions

Mike and Helen had a lot of subscriptions (Stan, Netflix, Audible etc). They logged in to PayPal and cancelled everything they didn’t think they would use much over the next year.
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Savings $650 per annum

Other bits and pieces

Here are a few other things that Mike and Helen did, each for modest savings.

• Changed electricity company
• Changed credit card providers and got rid of their loyalty credit cards (which they thought were a waste of money) and went back to basic options.
• Paid all bills on time. More and more places are offering discounts for on time payment. And of course, there will be no late fees if you pay on time
• Switched a gym membership.
• Shopped online
• Asked for discounts
• Taking lunch (leftovers) some days, instead of buying it
• Just being a little more careful about how they spend money

​Savings in total here of say $2,000 per annum.

Implement the anti-budget

With their new found riches, Helen and Mike immediately implemented the anti-budget. They increased loan payments to ensure their mortgage was on track to be done and dusted before retirement, and with the remainder, made tax deductible top-up contributions to super.

I expect this will add a bit over $200,000 to their bottom line over the next 11 years to retirement.

An extra bonus here is that with their new found habits, their retirement nest egg will go so much further.

Conclusion

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What's really interesting about this case study is that Helen says that now they are in the swing of it, there has been no noticeable change in their lifestyle. ​

“It took some getting used to at first. For example, I had to be a bit better organised with food. Now I look back and am embarrassed by how much we used to waste. And on the subject of waste, my waist line is a bit smaller too” she laughs.

“Once I made the decision to change phone providers, I found that quite easy as well. We had no mobiles for a few hours during the number switch, but no big deal”
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“And here is a plug for you Tony. Our motivation to take control came directly as a result of our Retirement Readiness assessment you did. Just the kick up the pants we needed. We are so grateful” 

When Mike and Helen think about money now, they are so much more relaxed because they know they are better positioned for the good life in retirement!!
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More importantly, has their story inspired you?
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What next

If you have not seen it already, head over to our comprehensive budgeting guide here.

There are three approaches discussed, because we have learnt over the last 30 plus years that there is not one, perfect solution that suits everyone.
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I know that one of these will work for you. Please stick with this, because once you are in control, you’ll be like Mike and Helen – planning and investing with confidence, meaning you’ll do better with your money, stress less about retirement, and live a better life too.

Whenever you're ready....here are three ways I can help you get on track to a stress-free retirement.

1. Grab a copy of our free Ebook.

It's called “5 Money Must Do’s For The Over 50’s” and are the lessons learned from helping 1000’s of people find financial peace of mind over the last 30 years.

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​2. Follow us on Facebook and Twitter and sign up to our regular emails updates.
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They are great places for great ideas.

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​3. Work directly with me.

If you’d like to work with me and my team to move from stressed and frustrated to relaxed and on track, you can schedule a phone call here.  You’ll find out how we can help and if we are the right fit for you. 20 minutes, no obligation.

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​IMPORTANT This information is of a general nature only and may not be relevant to your particular circumstances. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. See full Terms and Conditions here.