As someone who is aspiring to losing weight and getting fit, I struggle to cancel my membership as I know I really should be going. However, I have looked back at my calendar and realised that particular months are more busy for me than normal – meaning my ability to even remotely attend the gym are hindered. This is where I got my great idea!

Freezing your gym membership temporarily

I always knew you could pause your membership indefinitely for a small fee, though never looked into it. Why is it that I know I am frantically busy in April and May yet still keep paying fortnightly payments to Fitness First? Bit silly of me honestly.

Freeze your gym membership in Winter (pardon the pun)

I have opted to freeze my membership in the middle of Winter when I know I won’t be going. That’s a good 3 months of savings by been realistic with myself. Rough calculations show that I will save $210 by freezing my membership.

The only catch when freezing your membership

Often gyms will charge you a fee to pause your membership. I haven’t asked Fitness First yet what the cost of freezing is, though will be asking asap and hopefully updating this post. Either way, I am certain it won’t outweigh the savings of $210.

Oh by the way – these calculations are just for my memberships costs, this excludes the fact we also have another person in the family in the same boat, so it could actually be a saving of $420.

So what does the average Australian spend on alcohol?

According to a source from News Ltd, the average Aussie spends $31 per week on alcohol with men spending slightly more than women on drinks.

$31 a week is the average figure, meaning there is likely some much higher spenders out there – you know who you are! At $31 per week, that is an average of $1612 per Australian per year. Using my rough maths, that is around $35 billion a year.

People in NSW consume more alcohol per week ($39) than any other state with South Australia coming in last at $23.

What could your $1612 do for you instead?

Well if you added $1612 to your home loan each year in a lump sum, you would likely shave off a couple of years of your loan. That means a few more years you might not have to work.

You could even put the money in your early twenties towards the cost of your future kids education – this might mean less of a daily struggle come parenthood.

In saying this, it doesn’t mean you should necessarily cut out alcohol completely in order to save money – though what would happen if you perhaps reduced the amount you spent per week by $10? That is a cool $520 per year and will leave you much healthier than the next person.

Pretty interesting to see where our money goes if you ask me – I definitely have some plans to cut down my expenditure per week towards the end of this year on alcohol. Could really do with that extra cash.

The one thing I can tell you after reading nearly 100 books on the topic of finances is that just about all of them preach the same thing. Focus on your debt, put a little bit of money away, focus on your mortgage – the list is dry and boring. Topics we have covered at Savings Guide a million times – for free.

So next time you see a book that promises you the world, think about this.

Information on saving money is freely available online

I am more than willing to pay for good advice as a good friend of mine once advised me, however to buy a book that preaches the obvious – perhaps you should consider skimming the chapter index and looking to see if that content is online.

Odds are it is. Odds are it is covered in more detail with more interesting people than the book you are holding.

Are you buying the dream only?

Many people buy financial books because they sell them a dream. A dream of been debt free or significantly improving their finances. This isn’t to say these books can’t help you – though it would be wise to consider whether you are in love with the idea of the book or will actually implement measures from the book that will greatly help you into the future.

Give yourself a small online financial challenge

Don’t buy anymore books. Look to read something new and interesting on the topic of saving money online or getting out of debt everyday for a month. In 30 days you will find yourself more knowledgeable and with more money in your pocket.

The money you save from your purchased can be put into your emergency fund, which ironically is the most common tip in all of these boring books. Sorry I had to say it!

I’m being taken for a ride, and I know it. After all, what can you do? You’ve probably already travelled a reasonable distance, you’ve got an hour to kill and you’re hungry with no means of escape. That’s basically my idea of hell, right there.

And, of course, there’s nothing you can do about it. I heard recently that they’re looking into the prices of airport parking, and whether it contravenes any laws about monopolisation. It’s the same with the trains- the tickets are twice the price for one-tenth of the distance travelled. And unless you want to walk, there’s absolutely no way of getting out of it.

Of course, I could not buy a coffee at the airport. I realise it’s a lack of discipline on my part. It’s a practice called situational pricing, where prices take advantage of my lack of other options, my laziness and my caffeine addiction.

And, unfortunately, situational pricing is not likely to go away any time soon. How many times have you used another bank’s ATM purely because you can’t be bothered walking up the street? Or bought expensive water from a 7/11 because you were too lazy to carry it from home?

The key is to become conscious of the phenomenon, because it’s dead money. I try and eat a huge breakfast before I start travelling, although that doesn’t always compensate for the levels of boredom I experience. My own psychology feeding into the machine, as ever.

But the more aware you are, the more often you will be able to avoid those situations. Take water every where with you. Carry a thermos, or pack a lunch to a festival. Eat properly and don’t get caught out by a sudden craving for sweets in a mini-bar or at a vending machine.

And if you want more, think about these examples:

Refilling petrol at the hire car base is going to cost you above and beyond what you usually pay. Fill it yourself.

Beers at the footy. Long lines, warm beer, waste of money. Stay sober for the match and head for a couple of celebratory (or desultory) bevvies afterwards.

Food on an airplane. Low-cost airplanes don’t provide food, so bring snacks yourself before you pay a gazillion dollars for a chocolate bar.

Trinkets for the phone seem tempting at the store but wait and see if you can pick them up online more cheaply.

Hotel food and drinks is convenient, and especially easy when you can just charge it to the room, but it’ll be a sticky end to the trip should it get out of hand. Stay aware, and try and eat out.

Shop Assistants Are Not Your Friends

They are there to sell you something. They don’t necessarily feel the need to tell you the entire truth when making the sale. They can and are legally obliged to ensure that they have answered your questions (which you should always ask) about the length and conditions of the warranty. What is the repair procedure during the warranty and after it has expired. Be sure to know the refund policy if the item is faulty, and be even more wary when dealing with a private citizen as opposed to someone working in a shop. Just because they advertise in the local paper, doesn’t mean they’re community minded.

Today, And Today Only

How often in life does a deal come along that genuinely only lasts one day. Rarely. Of course, there are occasions where I am sure it is the case but often when a sales rep is telling you the deal is only for today, or that you’ll never get such a good deal again, he or she is trying to heavy you. It is, after all, their job. And your job is take to your time. It’s easy to get worked up in the frenzy of spending, but it’s your hard-earned dollars and no one can tell you where’s best to be putting it. At the end of the day, that is your call and yours alone. There will be plenty of ‘once in a lifetime’ offers next week.

Door-Knocking

Companies continue to door knock for a reason, it works. People catch us off-guard and in a place where we are less likely to bolt. SMH suggests watching out for the following techniques that might lead you astray; sob stories about how the sales rep needs the money, a series of questions that inevitably answer ‘yes’ though you still don’t want or need the product. Other examples include- the sales pitch that goes on for so long you need a cup of tea afterwards and end up buying something because you feel as if you’ve wasted their time. Or the social shame tactic- “I couldn’t help but notice your paint is peeling”. Make sure you have validated that the sales rep is from the actual company, and get their card as opposed to committing right away. Once you’ve had some independent advice about what the rep suggested, you might go for it. But you will do as a savvy consumer.

Lay-By

The ultimate in delayed gratification- you make a deposit on the item, and regularly pay it off until you pay off the entirety and get the item. There can be occasional sticking points- if you don’t pay off a scheduled repayment, the company could cancel your lay-by, so long as they ensure they notify you that such a measure is about to take place.

More Common Than You Think

Lots of people are addicted to buying things. The difference is emotional- people can buy something because they really want tit or because they have some spare cash to buy something nice. People with an addiction are spending money they don’t have on things they don’t really need purely to fulfill (whether acknowledged or not) an emotional need. And it’s a fairly common problem. Purchases are made, often on credit, in order for a brief moment of happiness or the illusion that said happiness will hang around as long as you own the item.

Credit Surviving The Downturn

Much has been made of the change in our saving patterns. Lots of Australians in particular are using extra money that comes their way- like bonuses or the payouts from the government- to pay down their debt. But that doesn’t mean we’re living without our credit cards. According to an American survey, about 40% of Americans say they are living beyond their means, a gap that is often filled on credit. Too often, it’s not only luxuries that the credit card is bolstering. An alarming amount of people need their credit cards to get them through the end of the month.

The Hit

Buying things can give you a buzz. And sometimes I think it’s worthwhile. I bought a jacket for an amount I would never usually spend, and everytime I put it on, it gives me a thrill. I think that was a worthwhile purchase, but expecting a purchase to bring you long-lasting happiness is a path to certain disappointment. It also enables the ol’ vicious cycle- when the item disappoints, the likely response is to go out and buy something else to fill the void.

The Expectant Hush

The research cited by MSN Money suggests four kinds of transformations expected from purchases, and they’re pretty interesting. Firstly, self-improvement; “I will be happier with myself if I get plastic surgery”. Secondly, improved relations; “She will love me more if I have nicer clothes”. Thirdly, adventure: “Owning a motorbike will probably improve my quality of living”. And finally, effectiveness; “I really need an iPad upgrade in order to work effectively”. None of these beliefs are true, yet all of them are exploited by companies in order to ensure people spend more money than they can afford.

Breaking The Cycle

Spending is an addiction like any other, and breaking the cycle is hard. There is a huge range of actions that can be taken- from understanding what emotions are driving your purchases and addressing them, through to joining up to an organisation like Debtors Anonymous. Understanding what things will genuinely bring you some form of usefulness or a degree of enjoyment, as opposed to those things that are without any long-term benefit, will see you happier and your credit card healthier as a result.

The Cold Hard Facts

In Clive Hamilton’s article on this topic, he quotes a Newspoll survey that found 62% of Australians believe they cannot afford to buy everything they really need. As we know, there are definitely people in dire need, as much in Australia as other countries. On the whole, however, Australia is one of the richest countries in the world. Even among the top 20%, around half of respondents still feel they can’t afford everything they need.

Where It Goes

Hamilton’s article is illuminating about where our money can actually go, and a lot of begins and ends with the home. It makes sense. A home is shelter, a roof over our heads. Therefore, filling it up or buying one much larger than we could ever use can easily be written off as a necessity. The extra rooms we build are then filled with the things we buy for them, they need to be cleaned and kept warm, and so the circle of consumption continues. We buy cars built for situations we will never find ourselves in and- this is the fact in Hamilton’s article that killed me- spend more on our pets every year than we do on foreign aid.

Where It Comes From

Even more terrifying is when you consider that all this consumption is funded not solely from our pocket, but also from credit. Even the mortgage that is really too big for our current income is an example of Affluenza gone crazy. Or buying the latest trend in furniture, clothing, hairstyle on plastic for no reason other than you ‘have’ to have it. And, sadly, it’s not even making us happy. Gain is brief, and it’s on to the next.

The Antidote

We all want to be happy. The knowledge that money won’t bring it is hard to take seriously when you understand the unhappiness that a lack of money can bring with it to. But taking a step back from the affluenza infection will not only benefit your finance, but your mental health also. When I read that 62% of people say they don’t have money for everything they need, I was inclined to agree that I, too, fit into that category. But if course that is only true should I replace the word ‘need’ with ‘want’ and I suspect that would be the same for a large proportion of those respondents. In article in the Sydney Morning Herald, suggested antidotes included building a strong family, especially with an awareness of role models like grandparents who wouldn’t recognise affluenza if it bit them. A respect for hard work and the money it earns is crucial, as is emphasis on philanthropy and charity. I know what I need- and it comes in human form.

Steady, Not Splurging

Having a miserable present to afford the future is not a particularly brilliant idea. Sometimes, discipline is called for. Sometimes, straightened circumstances require tough measures. But living as if you were on the poverty line is a path to despair. More like than not, you’ll end up spending huge amounts in a money bust-out and end up financially worse off than if you’d spent a bit of money each week on something nice. The trick is to approach money in a steady manner. Consistency and routine make any kind of discipline easy- you don’t even have to think about it after a while if it’s always the same set-up. Work out some entertainment money in your budget. If it means you save $50 less a week, then so be it. Your more likely to stick to your savings regime in the long-term if you can live fully around it.

Do The Same Things, Cheaply

As a musician, I work weekends and nights. I have the totally opposite schedule to all my friends, and it leads you to discover this whole world of opportunity outside of weekends. Weekends are expensive- movies, gigs, outings. They are all more likely to have a higher price tag on weekends. So why not make Tuesday night at the movies a routine? You can still catch the latest flicks, but at half the price. Or find some of the fabulous set menu lunch time deals- some of the best restaurants will have killer mid-week deals. Monday nights are often great nights to catch fantastic local musicians, home from touring that weekend. So your life can be as full of little luxuries, but without any of the associated debts.

Save Up Slowly

I’m a typical Gen Y- I like nice things. I prefer decent wine and shoes that don’t fall apart the second time I wear them. But that’s a personality trait I can make work for me. Instead of spending a hundred dollars over a couple of months on crappy T-shirts that instantly fall out of shape, I buy one good dress every three or four months. Simply, I buy less which means I can invest in a slightly more expensive item. Personally, I think if you have particular things you really like, then saving up and buying a decent version of them is a cheaper idea in the long run. Good quality will end up looking a lot better in 5 years time. My downfall was always my credit card in those regards though- so these days, I wait a couple of weeks or months until I have it in cash and I leave my credit card in a box at home. There is something to be said for delayed gratification.

The Research

According to Angela Self from the Globe and Mail, research shows that people will always opt for the free deal even when it makes no financial sense. Researchers at MIT conducted an experiment- you have the choice of two Amazon vouchers- a $10 gift certificate for free of a $20 gift voucher for $7. Unanimously, people chose the free option, even though you had more value ($13 as opposed to $10) with the second option. When actual dollars was attached to that question, the results flipped in the opposite direction.

The Add-on

I can’t tell you how many times I’ve fallen for the free add-on. The gift with purchase that I didn’t really want and was absorbed into the cost of the product anyway. If you think you’re immune to this kind of thinking, then look back on your purchasing past and think if you’ve ever bought a second top you didn’t love because it was two for one. Or you spent $110 on two pairs of jeans instead of just $60 on a pair you were really happy with.

The Sting

Companies wouldn’t offer free things if there wasn’t something in it for them. Unlike good-hearted philanthropic societies, these people are in it to get you into a certain spending behavioural pattern and keep you there. Sounds a little paranoid I know, but think about it. The ‘free’ phone attached to a 24 month marriage, where I continuously overspend my cap and have since paid for the phone a million times over. The fee-free credit card which you get ‘just-in-case’ and end up racking up a huge debt on. Free is a deliberate policy on the behalf of companies to get you involved with their products and ending up paying for them. Look at me with my iPhone. There is no way on this earth that I will let iPhones go until the next big advance in technology, the result of the ‘free’ phone I got with the plan.

Priorities

Negotiating the world- and the knee jerk response- of free is a matter of working out in your head what your priorities are. Have you ever spend several hours at the computer screen, downloading version after version of free software? Whereas if you’d actually just paid the price of software straight up you could have done several hours work and earnt the price of the software several times over? Time is money, and ‘free’ things can suck a lot of it.

When Free Is Good

Free is great if you want to try out several different things without committing financially to any one thing just yet. Free is fantastic if you have tones of time on your hands, and are a bit short of dosh. It’s a winner if you can remember to cancel your free trial and take advantage of all the features without getting your credit card charged. If you can stay organised, trying something out for free can be a great way to do a bit of market research and then spend the money on something you actually know will work.

It’s In The Mail

I cut up my credit card several months ago. Now, I need it to rent a car when I travel to Queensland tomorrow. So did I call my bank several weeks ago and ask them to post it, ordinary post, so it would arrive in plenty of time before I jetted off? Well, no. Three days ago, I rang in a complete tizz and asked them to express post it to me which of course- no shock here- cost me money. A moment of genius, that one. According to Forbes (and the great Angela Self), mailing packages late is a big cost of laziness. Sending it on time costs 60 cents. Sending it a week late will cost you several times that. The only way I have managed to cope with my laziness, other than the credit card fiasco (as I sit here, waiting for it to arrive before boarding a flight tomorrow, I curse my own lack of organisation) is to have postage stocks at home, so I can then just drop them off and get my mail out the door in time.

One Stop Shopping

We have an ALDI and Coles here in the lovely mountain. ALDI is great- cheaper by far. But it doesn’t have everything I need. So that means having to finish up the shop at Coles. And on top of that, I could probably save money if I went to a fruit shop and butcher instead of getting inferior quality ingredients at a higher price in the supermarket But three or four shops seems like a whole lot of hassle, so generally I jus go to Coles. It costs me a pretty big whack of expense, and I get poorer food on top of it. So to save money, and my palate, I’d be better off setting aside a decent amount of time to get the shopping done. I could even afford to have a coffee in the middle of the expedition if I did it that way.

Savings Accounts

A bit of research could end up saving you money when it comes to your savings accounts. There are plenty of online websites that compare the best savings accounts on offer from all the banks. Or if you want to exercise some customer loyalty, call your bank to discuss whether they have an account that would suit your savings needs better. While you’re on the phone, why not setup automatic deductions for all your bills or alerts for when they need to be paid? If you, like me, are inclined to laze, then taking your own legwork (or lack thereof) out of the equation will make your financial existence a much happier and less expensive endeavour, as you will no longer be constantly charged with overdrawing and late fees. You can be as lazy as you like as long as you have set up some processes in the first place that ensure you’re still taking care of business.