7 Ways to Save More as a Tradie
As a tradie, money comes easy for you. The job orders never seem to run out because there are always people who need your expertise. However, the physically demanding nature of your job can sometimes make you neglectful of your personal finances. If you can't manage your hard earned money now, you won’t have any savings for major future purchases and expenses.
Don't wait until you're about to leave the workforce to get serious with your financial planning. Follow these money-saving tips:
1. Set a savings goal.
The journey to a million-dollar bank account begins with a savings goal, like accumulating $1 million dollars before the year ends or having $20 in the bank every month. Setting a savings goal will keep you from spending money on unnecessary stuff.
2. Create a budget plan.
Make a weekly or monthly plan on how to spend your money. Allot a specific budget for a week or a month and list all the necessary expenses that need to be covered within that period. These may include payments for bills and utilities, as well as for basic necessities like food and entertainment. Don’t forget to save an extra fund for emergencies and unforeseen contingencies. If not used, the extra funds will go directly to your savings.
3. Pay your bills on time.
As soon as you get paid by clients, make a conscious effort to pay your bills on time. This will help you avoid paying for interest and late fees. Get your payment funds from your weekly or monthly budget and dedicate the rest to your savings account.
4. Start small.
Start by saving a small percentage of your income and then add a little more money to your savings on your next payoff. Don’t be unrealistic about your budgeting goals and go too hard on yourself. Cutting out your “unnecessary” budget for movie trips or Friday night outs, for instance, can only lead to you feeling miserable. Let yourself enjoy a reasonable amount of food and entertainment without splurging your everyday expenses.
5. Trim your spending.
Cut your expenses without changing your lifestyle by shopping around for better deals on your regular expenses, like buying quality tradie tools at discounted prices or subscribing to internet and cable plans with lower rates. Cancel any subscription from services with membership fees that you’re no longer using. Also, it’s wiser to pay your expenses in cash than relying on debit and credit cards to avoid instant splurges and to easily track your expenses.
6. Claim your tax deductions.
As a tradie in Australia, you can get income tax deductions for work-related expenses that you paid for yourself and were not reimbursed by anyone else. These expenses include clothing, tools and equipment, travel and accommodation when working away from home; training courses, licences and certifications, and union fees.
Don’t forget to keep the official receipts, invoices or bank statements to prove the purchase of the items when filing your tax return.
7. Get insurance.
Your income as a tradie is heavily dependent on your body. Despite zealously managing your finances and keeping your spending in check, unexpected events like accidents and illnesses can get in the way of your money-saving goals. Plan for the unexpected by getting personal insurance. This will protect you from financial loss and keep you from depleting your savings even in the most trying times.
Eager to start saving more from your trade? Download these steps, hang it on your fridge, in your UTE or in the shower and make sure you follow these guidelines every step of the way. You’ll find yourself saving more in no time.