How to save money when you go from full time to part time work

A few people have contacted me about how to manage financially if or when they go part time instead of full time. It can be hard, especially if it was unplanned such as job cuts or from injury. If it is something like that, make sure you talk to a lawyer to get advice as you may be entitled to compensation or there might be grants available to you, which will help.

If you are working less, theoretically you have more time, which can translate into huge savings. You can do more yourself and just by making the switch some expenses shrink anyway.

When you cut your hours you can also:

Reduce childcare

When you work less, you can save a few hundred a fortnight simply by taking your children out of childcare too.

Use less petrol

Not driving to and from work means lower petrol usage, less wear and tear on the car, no longer paying for parking and in some cases, it means you can get rid of the second car all together. Using public transport a couple of days might be more practical than having a car.

Wear cheaper clothing

This applies especially if you work in a corporate environment. At home you don’t need to have a certain look and can dress more casually if you desire.

With the extra time you can:

Drop the cleaner

As lovely as it is to have someone clean your house, you can save the $50 - $100 a week you spend on a cleaner and do it yourself.

Do your own beauty treatments

Do that manicure or facial yourself. Pop a treatment in your hair instead of going to the salon. Mix up your own body scrub and other beauty products. You can save a few thousand a year doing your beauty yourself.

Menu plan and shop in sales

Take the time to menu plan, cook meals to have on hand when you are busy, make school snacks and more. You can save a significant amount of money by planning your meals and stopping food waste.

Compare prices

Use some of the time to compare prices on all the insurance and services you use in your life. 10 minutes here and there checking each one can save you hundreds per service per year!

Exercise for free

Drop the gym membership and go for a run, use outdoor equipment or join up with other mums to exercise instead.

What ways do you save money being at home more?

Save money with EOFYS!

Next month is a fantastic month for your finances. Why? EOFYS! That’s right, end of financial year sales. There are two times of year I consider purchases, especially large items, now and in the new year sales. This year I haven’t just been waiting to snap up a few bargains, I am also comparing services.

Usually when I hear about EOFYS I groan because of the plethora of advertising about all the sales on. This year, instead of groaning, I am doing research! I regularly take time out to make sure I am getting the best deal on everything. Now is the time of year I sit down and do a stocktake to see if there is anything I need from large items like a freezer to smaller items like clothing. In previous years it didn’t occur to me to compare my services as well, aside from health insurance. How can you maximize savings with EOFYS?

1.) Write two lists
The first list is items you need such as clothing, white goods, furniture, electrical appliances and so on. The second list is all the services you use such as insurance, phone, internet, electricity, gas and so on.

2.) Work out a budget 
Have a budget in mind for each item you need or want. Don’t spend money you don’t have and don’t go burning a hole in your savings. There are bargains galore at this time of year but you need to be sensible or you may end up spending more than you save.

3.) Compare 
Compare prices on everything. Companies are competing for your dollar, so make sure you compare thoroughly both their regular offers and limited time offers. For example, as many of you know I had a car accident back in March. It has taken until now to get my car fixed. My first step was to compare and change insurance companies.

4.) Take action 
It’s all well and good to know what you want and compare, but unless you take action you won’t see any savings. So once you find a better deal, get it. Change any policies or providers if it works out cheaper. Plan a day to buy the other items you want or purchase them online to be delivered. It’s easy to think “I should compare and switch” or “I should buy xyz in the end of financial year sales” then not actually take any action. I have seen people waste thousands for not taking action and buying at the right times. Just like buying Christmas wrapping paper and decorations is cheapest in January, virtually everything you need is cheapest in the coming month.

Do you plan for EOFYS? Have you considered comparing providers as well as buying bigger items in sales?

Can you live without a car?

I took my car in this morning to finally get the repairs from a car accident back in March. (Long story, not my fault and I am so grateful police attended the scene because it verified my story.) This means I have no car this week. 

To prepare I did my usual grocery shop, sorted out mail I need to post and just get organised. I have lived without a car various times in my life, but this time I am more nervous about it. 

What do you need to live without a car?

Time! 

I know I need more time this week. Walking the kids to school takes 20 minutes longer than driving. Twice a day that is 40 minutes. 

If I want to get anywhere else I will need to use public transport. With past experience, that is 20 - 60 minutes longer each way.

With a few errands to run I could easily spend 3 hours extra travelling.

Public transport

It is easier to live without a car if you have good public transport or are close to everything you need. My location is good for my kids school and there is a bus that goes from their school to the big shopping centre near me. Taxi's cost more than I want to spend but are another option to use sparingly if pressed for time.

Walk or ride

Riding a bike bike or walking is cheaper than a car or public transport. A bike can get you there faster than walking and only costs about $300 a year to maintain well. If you have young kids you can get a bike trailer, otherwise get them to learn to ride bikes too.

Organisation skills

Without a car, I find I need to be more organised to ensure I utilise my time and any trips I make more efficiently.

Pros of no car

• Cheaper. It is usually cheaper to use public transport, walk, ride or get lifts than it is to own a car. Take into account maintenance, repairs, petrol, insurance, registration and replacement when calculating the cost.
• Healthier. I walk a lot more without a car and that is better for my health.
• Use time wisely. Without a car I am at home and working more. With a car I am more likely to waste time at the shops, go visit someone if I don't feel like working and in general waste more time and money. Without a car I tend to focus on what needs to be done and stick to my schedule better. 

Cons of no car

• Time. While I am more organised and focused without a car, I also spend a lot more time travelling when I do go out. More time is wasted this way.
• Last minute opportunities. No car makes it harder to take advantage of any last minute opportunities such as free tickets to an event, a sale, work or picking up freebies.

So how about you - can you/do you/have you lived without a car?

5 tips for a job interview

Todays job market is fierce and you really need a competitive edge to land an interview, let alone ace one. Here are a few tips for the interview process.

1.) Appearance 
Dress appropriately for the job you are being interviewed for and make sure you are well groomed. Shower, deodorant, a small splash of perfume or cologne (don’t bathe in it), polished shoes, manicured nails, a fresh face and neat hair all go a long way to making you look presentable and desirable.

2.) Have questions and answers ready 
Every interviewer asks if you have any questions. Having a couple of questions on hand makes it look like you have done your research, thought the job though thoroughly and if it is what you really want. Along with the questions you plan to ask, know answers to questions they are likely to ask so you aren’t sitting there umming and aahing while you try to think of something.

3.) Practice 
Ask someone to help you practice. Look up job interview questions and practice answering them. Take note of how you speak, if you are fiddling with your buttons or hair, how often you say ‘um’ and work on improving your answers so you are confident when asked questions.

4.) Be on time but not too early
Getting to an interview too early is as bad as coming late. Being too early puts pressure on the people doing interviews and that is not good for either you or them. If the only way you can get there is by arriving very early, that’s ok, just don’t go in. Go to a nearby park or café until just before your interview.

5.) Do your research 
Know about the company, know about the role and apply what you know to experiences in your own life to tie things together nicely in the interview. There is no point going in knowing nothing about the role other than what was advertised online or in the paper. You will make more of an impression if you know more than the average person.

What are your interview tips?

Get on top of credit card debt - You owe it to yourself!

We Australians are renowned for doing things on a larger scale. Unfortunately, when it comes to owing money we make no exceptions and are currently the proud owners of one the highest average household debts in the world.

A report from the Melbourne Institute showed that in 2012, the mean average debt level for Australian households was $151,488. More recently the Financial Review published figures that show Australian household debt has hit a record 177 per cent of annual disposable income.

Though these figures include money owed on mortgages, which makes up a large proportion of Australia’s personal arrears, the other main protagonist in the debt story is our old friend, the credit card.

In fact, last year the money we owed on store and credit cards topped $50 billion dollars for the first time.

Just like any debt, it’s fine when we can keep up with repayments. But outstanding credit card balances can be hard to stay on top of if circumstances change unexpectedly. Life has a habit of throwing curveballs when we least expect them, and losing income or being hit with an unexpected expense like a repair bill can put you back at square one when it comes to keeping on top.

That’s why we thought we’d share a few ways to make sure a worry-free financial future is on the cards when it comes to that pesky plastic. 

Find a rate that’s great

Do you know what interest rate you’re paying on your credit card balance? If the answer is no, then you’re certainly not alone. According to recent research by creditcardfinder.com.au, 40 per cent of Australians are unaware of their card's interest rate. With rates running as high as 25 per cent, this is crucial info that could mean the difference between paying off your balance and spending more time in debt than you may have bargained for. A December 2013 RateCity survey showed 11 per cent of respondents were making minimum repayments to pay off their debts. Steve Hutchison, spokesperson for the comparison company, says: “By making the minimum monthly repayment of two per cent on average, the average credit card balance of $3,282 would take 24 years and five months to pay off, based on the average purchase rate of 17.21 percent. The total interest charged would cost more than double the original balance, of $6,430. That could be your next car or a family holiday.”

In short, this means you should always pay more than the minimum payment and switch to a lower rate.

Better still, transfer to 0%

Of course, when it comes to interest nothing is quite as good as nothing. With lots of credit card companies offering tempting zero per cent deals for six months or more, go for a transfer and all your payment will be going towards clearing your balance and not just fighting the ever-increasing interest. Too good to be true? Well, not if you fully understand the terms and conditions. We all know credit card companies aren’t in it out of the goodness of their hearts, so ask the question if they are going to charge you any interest to transfer and if there are any other costs. Do your figures and make sure the transfer still works out in your favour. Also, be aware that the zero per cent offer will normally only be for the balance you transfer, not any purchases you make on the new card. So try and avoid using your new plastic and concentrate on paying off the debt.

Credit to the debit

Sounds like a no-brainer, but the simplest way to avoid increasing your credit balances is by using your debit card instead. This means what you spend comes straight from your bank account and you can’t use more money than you have available. Go cash only and you’ll find that your credit card debts start to head in the downward direction a lot faster. If you’re ready to make it curtains for your credit card debt, it’s time to make it scissors for your credit cards.

Budget to budge it

Getting the balance right with your figures is crucial to taking control of your credit card debts; try and pay more than you are at the moment each month and you’ll see results a lot quicker. If you’re already up to the maximum payment you can afford, there are two ways of doing this: spend a little less or earn a little more.  You can try and achieve the former by working out your monthly outgoings and seeing if you can reduce things like travel expenses or eating out and nights on the town. Or, don’t change a thing and go for the latter approach; try and negotiate extra hours at work or finally get the boss to agree to that pay rise.

Considered consolidating?

If you have multiple credit card debts, consolidating into a personal loan is another option to help you clear the money you owe whilst staying in control. Firstly, the interest rate you’ll pay is normally a lot lower that that charged by credit cards so you’ll end up paying off less money in total. If you have multiple credit card debts, consolidating into a personal loan is another option to help you clear the money you owe whilst staying in control. Firstly, the interest rate you’ll pay is normally a lot lower that that charged by credit cards so you’ll end up paying off less money in total. Secondly, by putting all the debt you owe on credit cards, personal loans and any other debt in one place with one simple monthly payment covering everything.  Finally, a loan will give you the peace of mind that you’re paying off the full amount, not just the interest.

Even the experts agree that consolidation can be the right move. Steve Mickenbecker at comparison firm Canstar is a firm exponent, saying in a recent online interview: “If you have trouble, and you know you’re going to have trouble, maybe it’s time to look for an alternative. Put your outstanding debt onto a personal loan and cut up the card.”

Rachel Maher is a financial content writer from Western Australia.