Savings Tip: Keep The Bottom of the Sieve Small (Ep568)
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When you start earning more money you need to be really diligent about not spending more. Ben calls it keeping the bottom of the sieve small.
When it comes to analogies, no one does it quite like Ben. Imagine you were dropped out of this car right now into the ocean. In this episode we’re going to talk about saving money and Ben has this analogy of the sieve. It is a really good analogy and just an idea to get you focused again around saving money rather than just making money. So for me, I guess my focus has been on making more money of late, but really looking at my life and where I can save money is a really great idea and just by recording this video with Ben probably saved myself around $200 per month. So I’ll throw over to this segment that comes from a longer episode that I did with Ben on saving money.
My accountant always says it to me. He’s like, Ben, as you earn a little bit more, you’ve got to be careful that the sieve at the bottom isn’t increasing and I was kind of like what do you mean the sieve is like where the money’s going out at the bottom. You putting sand in the top or it’s coming out the bottom and I for the first time in a little while looked at everything in my life and by looking at those things, I took my phone bill from 140 bucks a month to 40. Yeah. And like check out this awesome phone. Ben Has the latest technology guys, I think it’s got an apple iphone 4 or something. This is just my work phone. I am sort of cool guys outside all this stuff.
But that’s the thing. Like I’m, I’m rocking an iphone 6 now because I had an iphone 7 and I went swimming with it and it didn’t survive that. And rather than get it fixed, I went back to my old six battery was dead. So I think I paid like 100, 150 bucks to get like a fresh fresh battery and fix her up. And then I’ve got mates who have just going out and dropped 1500 bucks on the brand new one that they couldn’t really afford. So it’s a funny thing man. Like I looked at that and I saved myself 60 percent. I did the same thing with energy. I went to click energy and now I’m getting 40 percent off my energy bill. I’ll put solar on the roof and now I don’t pay. Solar is a no brainer. Like when you own crazy man, like if you’re staying in a place, solar is so cheap now.
I worked out the return on investment. It’s a year and a half now it’s your money back just to pay back. I looked at because I’m renting, I looked at how can I run solar, like how can I hack it together so I can run solar because I could set up, set up a rig in the backyard. I get heaps of Sun, but you can’t wire it in. You’ve got to get the meters changed. It’s just a lot of stuff. Yeah. Um, and then it’s all dicey there. Um, you know, and then I went across like my insurances, my properties, and then the big one for me as someone who has a homeloan, plus investment loans, I called up my banks and got my broker on it. Because banks are desperately fighting for business right now, so able to save 20 grand a year in interest.
Like I paid off my car loan which is again another couple of thousand bucks a year and I’ve, I’ve looked at all these things and there’s not a single part of my life where I couldn’t save 30 to 50 percent. I’m like, how many other people are sitting out there just burning through cash, you know what I mean? I’m not saying like everyone needs to go do that. It’s just, it was so easy to find that money just by spending a tiny bit of time on it. Yeah, well that’s the thing. Even my phone bill, I’m still paying 120 bucks a month but my bill. Like my 24 month contract ended last month. So I need to get onto that. Aldi mobile 45 bucks, unlimited calls, texts and data. Is it decent? It’s Telstra. Telstra on my phone. Okay, that’s sick. Is that a plan or is it, it’s month to month and you just. If you want to pull off any time, there’s no contract, no plan.
Ryan get naked. I’m talking about from the sheet or whatever that was going on. I go, yeah, I’m going to do that. Then I can just cancel Telstra and then go with the. I didn’t get my phone. I ordered the addy sandwich, took a week and I’ve got Joe in my office to roll it out. But that day straight across my old number, that easy, you know, I’m just, this is where I’m getting at like as someone that’s just been so focused on earning extra income and investing that income for so long, I think got the Dalles these whole other thing that I used to do which was saving money on everything and budgeting really well and I’ve just gone back to some of those characteristics and it’s incredible and I think it’s particularly around anyone that owns property that’s listening to this right now. Like you can save yourself a fortune are.
I’d be surprised if you couldn’t save yourself two to three grand on your line right now just by getting on the phone, your bank or threatening them to leave and going, finding a bill ended up raising money. Well, that’s the thing. Get on the phone to your bank or go to a mortgage broker and work with them and get them to help you get a better interest rate on your loan and then save that money and then what most people do and save that money and then just be cheering and live a more expensive lifestyle, but if you can save that money and take that extra five grand, 10 grand, 20 grand, and then put that into your offset account or pay off your loan or invest that money, then you can start building your portfolio even more rather than just spending that savings, reinvest it or pay down debt.
Look, the thing about these costs that I’ve saved in my life, I’ve probably saved myself 35 grand, which sounds insane. I know that it’s kind of like I’ve just been living like a bit silly for a bit, particularly with the bank loans. That 35 brand is 50 percent of the deposit for another property. It’s just insane. You love the names of the plans as well. Like it’s like the lodge, the xl, the xxl, likely xxx. All these plans is is you’re get a bit of a kick out of that later. Okay. So they haven’t. Obviously if you own property then you can take a bunch of these steps and could save yourself thousands of dollars
every year. Even if you don’t own property though there are opportunities to cut costs within your life. Just for me alone, myself and Kelly have to telstra mobiles and our plans just ended last month. They are about $100, $120 each and I have signed up for Audi Mobile, so I’ve purchased the sims that were $5 each, so I spent 10 bucks. They should come within the next week and then we’ll switch over to that and they have phone plans that start at $15 per month and a half decent, um, and the $45 per month is more than what I would need so easily saved myself a $100 if not maybe 150 or even $200 per month just by that alone. And so I’m really happy with that. I’m going to be looking at other ways to save money in my life and I encourage you to go out there and look for ways to save money as well. If you haven’t checked it out, do go ahead and check out my video on the barefoot investor bank accounts and explained because that had the biggest impact on my life and my money management and budgeting. That’s been a really popular video. Had a lot of people comment on that and say that it was really helpful. So I’ll leave a link to that in the description down below or you can click it and until next time, stay positive.
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