Call 1300 805 221or

How the ‘OLLY’ approach could help you save for a home.

May 31, 2017

 

How the ‘OLLY’ approach could help you save for a home without ditching coffee.

We came across this great article published by Domain.

While saving for a home requires cutbacks on luxuries, which is something you’re no doubt sick of hearing, it’s definitely okay – and important even  – to have at least one thing you indulge in. Life is short after all, so it must be enjoyed!

Choose “one little luxury”, or ‘OLLY’, whether it be treating yourself to an espresso martini on a night out or getting your nails done every now and then, and set money aside for it in your budget.

Our OLLYs give us rewards on the way to reaching our savings goal, helping us to stay focused without growing too resentful about curbing our lifestyle.
There’s nothing better after waking up bleary-eyed than sitting with a cup of hot coffee, smelling its delicious aroma and sipping its milky goodness. After a shot – or two, on most days – of caffeine I feel like a different person, ready to face the day.

Aussies love a good brew, with nearly half of our population consuming the beverage according to the Australian Bureau of Statistics. Research from Skip, a food and drink ordering app, found the favourite type of coffee in New South Wales was a flat white (with cappuccino a close second), while Victorians are partial to a latte. You don’t have to completely give up your habit, but you can start by swapping a takeaway coffee for a homemade cup.

Your reluctance to give up coffee is understandable but if you’re trying to save it’s going to be one of the easiest costs to cut back on. A small cup of takeaway or cafe-bought coffee is at least $3.50, and if you want a medium size it could be up to 60 cents more. That means conservatively, if you stop buying one coffee a day you’ll save $1277.50 a year.

That’s more than $100 a month you’re spending on just a drink. And it’s not even one that will quench your thirst.

You don’t have to completely give up your habit, but you can start by swapping a takeaway coffee for a homemade cup.

I see people juggling their flimsy disposable coffee cup on the train to work in the mornings – presumably having found somewhere to grab one on the way – along with their bag, phone and other items, and I don’t understand the fascination. Apart from the fact that it will likely spill and you’ll end up smelling like you’ve doused yourself in a coffee perfume, you also have to lug around an empty cup and find somewhere to dispose of it. Is it all really necessary?

If you must take a coffee with you on the way to work, why not invest in a travel flask – for less than $10 – filled with a homemade coffee?

You can make an instant coffee, or if you prefer something more gourmet there are plenty of pods or beans and fancy coffee machines – you’ll just have to do the sums to make sure the investment is worth it. But if you’re spending upwards of $1277.50 per year on takeaway coffee, I’m sure it will be.

You might be disgusted to read this, but personally, I love instant coffee – I don’t get the whole coffee connoisseur thing; café-bought coffee all tastes the same to me. I drink Moccona, which isn’t the cheapest brand, but if I buy it on sale (which I always do) it costs me around 9 cents a cup, plus a little extra for milk and sugar.

Let’s say a cup of homemade instant coffee costs 20 cents (very conservatively), that’s at least $3.30 less than per cup than you’ll pay at a cafe, a saving of more than $1200 a year. That’s huge. This way you can still have your daily brew, and save too.

If you really can’t part with your cafe-made coffee, then consider cutting back to one a few days every week – perhaps partaking in a social coffee outing in the office every other day – or reducing the size you buy.

When doing your budget, look at where you can make up the money you have spent on your OLLY. Perhaps it’s as simple as refraining from buying an item of clothing or walking home instead of catching the train. Every bit counts.

(source: Domain)

Tags: , , , , , , , , , ,

Share on FacebookShare on LinkedInTweet about this on TwitterShare on Google+Email this to someone

Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.
Get Connected