Cashed up diary, week two: Gross ways uni students save money

From having just barbecue sauce for dinner to tailgating people at carparks, some Australians are desperate to save money. But there’s a much easier way to do it.

Squirting barbecue sauce from a bottle into your mouth for dinner.

Tailgating another vehicle at the carpark exit to avoid paying your ticket.

Walking 25-30 minutes to skip the $2 bus fare.

Spending hours on the phone to Dan Murphy’s to save $9 because you didn’t get the discount you deserved on your beer.

Smuggling tea bags into your dormitory by hiding them up your sleeve so you don’t have to pay for the beverages already there.

Buying a Macca’s burger instead of going grocery shopping.

These are things some of my university peers have admitted to, sometimes with a laugh, other times red with embarrassment, all in the name of saving money.

But is that the best way to save your hard-earned dollars? A financial expert doesn’t think so.

Perhaps the most disgusting way to save money I’ve ever heard of.

Although it’s great to save money, in Week Two of news.com.au’s ‘Cashed Up’ money challenge, I learnt something very important.

And that’s “don’t sweat it” when it comes to going over your budget.

“The key is prioritisation”, according to financial advisor Ben Nash who created Cashed Up.

The money guru says you can do two simple things to spend less and save more with minimal effort.

Step 1: Prioritise your cash flow – what’s worth spending money on and what is better to cut back on?

Step 2: “Ruthlessly” cut costs to “free up” your bank account and put the money to better use elsewhere — either investing it or saving it for later.

One 22-year-old uni student has avoided ever having to pay for parking by following the car in front out of the boom gate.

But how ruthless is ruthless?

Is it worth buying $5 Aldi goon rather than a proper bottle of wine for a night out?

Should you only ever hang out at the beach or a friend’s house to avoid the unnecessary costs of a bar or a movie (Something a uni student told me he swears by)?

Or some of the stuff I’ve already listed above: Macca’s burgers for dinner, tailgating in car parks, tea bag smuggling syndicates.

How about when I ate minced meat that had been in the fridge for ages so I didn’t have to throw it out and waste money? Was the subsequent stomach ache worth it to keep my bank account in check?

No, is the short answer.

Saving money is about cutting down, not cutting out, according to finance star Ben Nash.

Mr Nash said you should rank your expenses “by value” in a bid to save money which means the things that really matter to you have to stay on the cards.

“Value in this case means something that brings you real enjoyment and contributes to your overall happiness,” he said.

“These are typically things that make your life easier, provide you with amazing experiences, or make you feel good about yourself like donating to charity, or shouting yourself a mani-pedi.”

OK so the mani-pedi might not apply to me but the overall idea does. Skipping out on dinner and a trip to the movies to save a few bucks isn’t going to enhance my quality of life.

Mr Nash said he helped a couple who were looking to start a family prioritise their spending by cutting down on their social interactions, reducing how much they ate out and scrapping rideshare all together.

Most uni students (or someone who’s just graduated from uni like myself) aren’t looking to start a family but the principle remains.

“Things that fulfil a momentary desire or contribute to your clutter are often NOT those expenses that bring real value,” Nash added.

“It’s amazing how easy it is for things to creep into your spending and before you know it you don’t have enough money leftover to hit your savings targets or bigger personal goals.”

So what should I do?

Moral of the story: don’t cut out on the things you love doing for the sake of saving a few dollars.

You’ll inevitably lead a lower quality of life or revert back to your old ways.

However, there’s nothing wrong with cutting back on these things. Maybe hit a nightclub once a week rather than every day.

And hopefully you never get to a point where you have to eat barbecue sauce for dinner so you can stick to your savings goal.

Get Cashed Up

Created by financial advisor Ben Nash, Cashed Up is news.com.au’s free six-week course to help Aussies get their finances in check.

Those who sign up to the budget bootcamp get weekly, step-by-step challenges to improve their financial fitness. By the end of the six weeks, participants will have set a budget, created a savings plan, learned how to invest, and sorted their superannuation.

The interactive course can be started at any time and aims to empower participants to make more informed financial decisions.