Home News ​5 reasons to try a spending freeze

​5 reasons to try a spending freeze

Font size :
Creating and sticking to a budget is not always easy, so how can you kickstart your motivation to better manage your finances? Gavin Smith from State Custodians tells us how.

According to a recent study by NAB, almost one in five adults in Australian are living pay to pay and rarely or never have any money left at the end of their pay cycle. This means that almost one fifth of the nation does not have a savings plan in place or money saved up for emergencies. 

If you find that you fit into this category, then it is time to make some changes and that can start with a spending freeze. But what is a spending freeze and why should you consider trying it?

A spending freeze is a period of time during which you stop spending. Now while it is almost impossible to spend absolutely no money for two weeks as you have electricity, water and transport bills as well as groceries, the goal is to keep it to an absolute minimum. Even though you will still have a few bills and spend on essentials, a spending freeze can be an amazing way to re-evaluate financial priorities, appreciate what you have and boost your savings account.

So what do you need to start a two week spending freeze?

Decide beforehand where the money saved will go.

It is important to have an end goal for the money you save so you don’t end up blowing hte money away at the end of the freeze. Think about setting up an emergency fund, making a lump-sum repayment on a debt or something similar. 

Look through your pantry. 

How often do you go through your pantry and take inventory of what you have? Pull everything out and see how many meals you can make with what you have. Also look in the freezer to see if there is any meat/meals you can use. Plan meals for the two weeks, and stock up on what you’ll need to make them. 

Fill your tank up 

Before the spending freeze starts, head to the petrol station and fill up or buy enough public transport credit to last you. You can even pre-pay any bills that will be due during that time. 

A spending freeze does take planning and discipline, so what should you consider doing it? 

Jump-start your savings

Depending on how much you spend on non-essentials every week, the two week freeze could you give you a big head start on your savings. Before doing the spending freeze, you may not have any idea how much extra money you spend on unnecessary items every week. With a spending freeze, you essentially get that money back so that you can put it toward your financial goals. 

Get your budget back on track

You may not realise how much your small expenses are really costing you. When it comes to your budget, information is power. Being able to see where you’ve been overspending – is a great way to take control of your money and improve your budget for the future.

Build your willpower. 

The more you use you willpower, the stronger it will become. After the two week freeze you may find that you are able to resist impulse buys more and start to question whether you really need to purchase that item. 

Learn to use your pantry

As mentioned above, many people could have dozens of meals sitting in their pantry and freezer and not even realise it. Being forced to live on what’s available for two weeks can get you in the habit of utilizing your pantry and getting creative with ingredients you have on hand. It can also help cut down on grocery spending. 

Focus on what’s important

During the two week spending freeze, instead of spending time out shopping, you can focus on what is important to you and spend more quality time with friends and family. Instead of going out to an expensive restaurant, you can invite all of your friends over for a pot luck party. Instead of going to the movies, you can have a games night with your family. 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Anouska Linz

Anouska Linz is Manager, Online Sales at State Custodians and has over 10 years’ experience in financial services, both in broking and banking. Holding a bachelors degree in accounting, Anouska quickly discovered a love for mortgage lending and assisting people to achieve their home ownership goals. She leads a team of highly experienced lending specialists who are passionate about finding lending solutions which result in real wins for the customer. She is also a massive netball fan.

For more information on our home loans, visit www.statecustodians.com.au or call 13 72 62.

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom caused property prices to collapse, on the plus side, homes are more affordable again Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Jul 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords