Savvy Queensland-based entrepreneur and author Rachel Smith, 40, managed to save herself an impressive $52,000 a year just by changing a few simple habits.
While Rachel is not the first person to achieve a goal like this - and many of us wouldn't earn enough to save that much - the more advice we get from people who've done it, the better.
After mindlessly spending on things she didn't really need, Rachel found that she was wasting tens of thousands of dollars annually.
But a life-changing trip to India changed her perspective and gave her the tools she needed to curb her spending habits.
"These cities based their lives around more sharing and less waste," Rachel said.
"With less food security than I had at home, I was exposed to the sharing economy and not needing all this stuff. In Mumbai, I was shown around some of the poorest lands in the world where they use everything and value the little that they had. Every piece of waste has a new purpose."
It was this realisation that led Rachel to write down every single thing she was spending her money on and take stock of what was really important to her.
"On New Year's Eve, I made the decision I wasn't going to buy anything new or second hand for 12 months and see how much I would save."
"For example, you might be buying lunch every day and shopping in Zara when what you really want to do is go on holiday. If you realise exactly where your money is going you can cut down where you need to and save for that dream purchase."
By culling her impulse buying, in just a year Sarah saved enough money to put a deposit down on her dream home.
"There were reasons for my impulse shopping," she explained. "I'd reward myself for working long hours. I was earning more than ever, but also working longer hours. So I would treat myself to new clothes or simply go for a shop."
"But once I identified what was important to me, I made sure I created all these different bank accounts. One for bills, one for fun purchases such as my hobby, horse riding, and another for saving. That way you never spend more than you have," Rachel advises.
"Before I didn't have a record of what I was buying," she said. "It's so easy to do … and most of us have no idea how much we spend on a daily, weekly or monthly basis. Eight per cent of us don't keep a record. It's just part of the daily habit.
"Now, if I want to buy something new, I will write it down and have a waiting list which shows the item, price and the date which I can buy it. I quite often find myself not wanting it by the time the date rolls around."
Rachel also advises to swap or borrow things you need on an ad hoc basis such as camping gear or extra chairs for entertaining.
"And if you can get your friends to pass on kids hand-me-downs or used books, you can save further money this way."
Now she uses her intel to help others improve their spending habits.
"After that first year, I had saved over $52,000 and not long after, I was made redundant," Rachel added.
"So I thought this is a great time to write a book, Underspent, and share my story, because after that redundancy, a lot of my colleagues were highly stressed because they had zero savings."
- Celebrity NewsPeter Urlich and his perfect match with wife Danielle
New Zealand Woman's WeeklyToday 7:00am
- Celebrity NewsHow boss babe Madison Reidy created her own dream job
Woman's DayYesterday 5:00pm
- CompetitionsBe in to win a huge book prize package valued at $650!
Now To LoveYesterday 9:00am
- Real LifeWhy a brain injury won't stop Miriam Ellis from getting back on her bike
New Zealand Woman's WeeklyDec 03, 2023
- CompetitionsBe in to win a Bondi Sands care package worth $200
Now To LoveDec 02, 2023
- Celebrity NewsFormer Shortland Street star Holly Shervey's wild year
New Zealand Woman's WeeklyDec 01, 2023
- Celebrity NewsTeuila Blakely reflects on the job that changed her life
Woman's DayDec 01, 2023
- Celebrity NewsThe Breeze host Robert Scott on what he loves most about Christmas
New Zealand Woman's WeeklyNov 30, 2023
- Celebrity NewsOlympic hero Ellesse Andrews' secret to her success
Woman's DayNov 30, 2023
- Celebrity NewsCoast radio host Jason Reeves on his favourite Christmas childhood memories
New Zealand Woman's WeeklyNov 30, 2023
- Real LifeBoxing’s power couple: Alina and Isaac are changing lives
New Zealand Woman's WeeklyNov 29, 2023