Author Archives: Lily Sophia Madden

Weddings are always a joyous and beautiful celebration, no matter how well you know the couple. However, even if your food and drinks are provided on the day, it can still be a costly event by the time you find an outfit, organise transport and most importantly, buy the wedding gift.

If you’re not sure how much to spend on a wedding gift, there are sure-fire ways to work this out. This guide will help you find a wedding present that’s just the right price.

Tradition

Starting with tradition, it’s very common to use the average cost per head for food and drinks to work out how much cash you’ll need for a wedding gift. According to the 2020 Australian Wedding Industry Report, the current average wedding catering cost is $9,891. So, if you know there are 100 guests attending the wedding, you can safely estimate your cost per head at just under $100.

Attendance

Flying to Bali for your cousin Joe’s wedding? You may need to pay a pretty penny just to get to the wedding. Reported by WorldFirst, 59% of couples feel that getting all their friends and family to the wedding is the biggest challenge on the day, and this is especially true when it comes to destination weddings.

Considering the cost of flights and accommodation, attending a destination wedding could end up costing thousands. Consider these costs when purchasing a wedding gift for the happy couple. If you’re paying your own way to the wedding, your presence may be the ultimate gift.

Relationship

Deciding how much to spend on a wedding gift is generally determined by your relationship with the person or in this case, couple. How well do you know the bride and groom? Are they your oldest childhood friends? Or a friendly office acquaintance who invited the whole team to their wedding? This will determine the amount you’re advised to spend.

What Can You Afford?

Without thinking about anybody else, we suggest asking yourself (and answering truthfully) how much you can realistically afford. Everybody has a budget for discretionary spending and using this as a guide will help you set a maximum price.

No matter how badly you want to buy the bride and groom something amazing, they wouldn’t want you to go broke just to get them a gift.

Wedding Gift Ideas

So, you’ve decided how much cash you have for a wedding gift and now you need to spend it. Here are a couple of popular options:

Wishing Well

Some couples have a wishing well at their wedding which is like a donation box used to collect money on the day. Instead of buying a wedding gift, you could just donate to the wishing well.

Gift Registry

It’s become popular for couples to send guests their online gift registry, where they can choose from a selected range of gifts to buy or pay a portion of. In doing so, the newlyweds will receive a gift they really want, or something more extravagant which was bought collectively by several guests.

Group Gifts

Contributing to a group gift is an excellent way to spend your money and make sure the couple receives something of value, such as this artisanal (retailing for $899, with free engraving).

What If You Can’t Attend the Wedding?

You may not be able to attend the wedding due to clashing schedules or from a purely financial standpoint. If this is the case, it’s still customary to send a wedding gift if you know the couple well.

Other Considerations

Sometimes the age of the couple can determine the cost of their wedding gift. Previously, it’s been found that from their guests because they may already be established with a house and all the furnishings. It may also be their second marriage.
As you can see, there are lots of helpful tips to determine how much to spend on a wedding gift. Regardless of your selection, you’ll probably find that the best gift you can give the newlyweds is your presence on their special day!

Unless you’re lucky enough to win the lottery, achieving financial freedom isn’t easy. It takes time and hard work, requiring many years of dedication. Set yourself on the right path with these crucial steps to financial freedom.

Step 1: Set Your Goals

Financial freedom can mean something different to everyone. To determine what it means to you and the goals you should be setting, consider the kind of lifestyle you want to live. Saving up enough cash as a safety net is a great place to start.

Wherever you are in the financial and lifestyle scale, having a clear idea of what it means to achieve financial freedom will help you create a blueprint for achieving it. Making enough income to afford a certain lifestyle is doable, although never having to work again for the rest of your life while still living comfortably could be your ultimate goal.

Step 2: Educate Yourself

How much do you know about your own finances? Managing money will be easier if you’re financially literate. The more you know, the better equipped and confident you’ll be with handling your finances. Don’t let those obscure financial terms confuse you.

Financial literacy is a learned skill and not commonly taught in schools, so you may need to do your own research. You can learn a lot from financial wellness blogs, listening to podcasts and attending local seminars.

Step 3: Pay Off Debt

Having as little debt as possible is essential for financial freedom. Start by calculating how much debt you’re in and determine what sort it is. As opposed to low-interest or no-interest debt, high-interest debt should be your priority to pay off as it costs you the most.

Credit cards, cash advance loans, auto loans and store cards are examples of high-interest debt. Student loans, home equity loans and mortgages are common low-interest debts.

Step 4: Start Investing

It’s important to learn the different ways to invest your money early on. To help you decide which type of investment is right for your goals, learn more about your options below.

• Bank and term deposits – How this works is you invest an amount of money with your bank for a fixed period and then you earn interest. Interest can be paid on a monthly, quarterly or annual basis.
• Bonds – You loan your money to a company or the government, which will provide you with a fixed return that’s usually higher than what a typical bank offers.
• Shares – If you buy a share, you buy a piece of a company. As a shareholder, you’re entitled to a portion of the company’s profits.
• Managed funds – A managed fund consists of multiple shares pooled together, which your investment is spread over.
• Property – This involves buying a property and renting it out to pay the mortgage. Property investments may provide you with income from the increase in value over time.
• Business – Buying into an existing operation is a high-risk investment. It’s important to understand all the details about the business before investing in it.

Talk to a broker or financial adviser to be walked through these investment options.

Step 5: Track Your Spending

You don’t need to painstakingly write down every expense and purchase into a spreadsheet. There are budget apps and online platforms that can track every transaction going in and out of your account. This will allow you to categorise your spending and get an overview in simple graphs and diagrams. Set budgets for each category and get real-time updates on whether you’re going to stay within your monthly budget or not.

Step 6: Evaluate & Make Changes

Monitor your progress as you work through the previous steps to financial freedom and make changes if necessary. If something isn’t working, try a different tactic. It might take time to find the right pathway to financial freedom, but your hard work and perseverance will be worth it in the long-run.

Building a life of financial freedom requires discipline and delayed gratification — sacrifice now in return for more choices later in life.

Discover more financial advice on the Cigno blog.

Want to become more environmentally friendly? Helping Mother Earth isn’t the only benefit of going green. Using fewer resources and less energy can be as good for your savings as it is for the environment, so there are plenty of great reasons to switch to sustainable living.

These are just some of the ways you can go green in your home and workplace to save money.

1. Go Paperless

What do you spend on paper, printer ink, printer maintenance and postage annually? If you keep track of your finances via hard copies of documents, you may be incurring a small monthly fee from banks that charge for paper statements. Going paperless and using digital transactions is great for business sustainability, allowing you to minimise your stationery bill while reducing your carbon footprint.

2. Reduce Home Waste

There are many tips and tricks to make eco living easy. To keep your cleaning habits from harming the environment, try putting fewer chemicals down the toilet and sink. It’s possible to clean effectively with more natural cleaning solutions, such as white vinegar or bicarbonate of soda applied with water and a cloth.

Recycle food packaging by placing paper, tin, foil and cardboard in your home recycling bin. Avoid wasting food by buying less of it and try to eat everything in the fridge before resorting to takeaway.

3. Invest in Green Home Solutions

If you really want to cut energy costs over time, consider investing in green home solutions like solar power, energy-efficient lighting and smart meters. They’re an investment to install, but solar panels can make enough electricity for you to go completely off grid. If you’re looking for a cheaper green solution, energy-efficient light bulbs use less electricity and don’t need to be replaced as often as regular light bulbs.

It’s also important to identify the biggest energy guzzlers around your home or business. Home heating systems and boilers are usually among the worst culprits. Installing a smart meter is one of the best ways to reduce your electricity consumption, as this device can be programmed to switch your heater or airconditioner on at specific times.

4. Bring Your Own Shopping Bag

Single-use plastic bags have largely been removed from grocery stores, although it’s still possible to buy cheap reusable plastic bags. It may be convenient but purchasing plastic bags every time you go shopping is bad for your wallet and the environment.

Invest in some cloth bags and keep them in your car so they’re within easy reach each time you do your shopping. This will reduce the amount of plastic bags destined for landfill and leave you with more money in your pocket.

5. Use Rechargeable Batteries

Invest in a full set of rechargeable batteries for all your gadgets, remotes and smoke detectors. Rechargeable batteries can be charged up to 1,000 times, making them far more environmentally friendly than standard alkaline batteries. They also offer greater performance capacity, keeping your devices running for longer.

6. Shop Local

Small businesses contribute to a third of Australia’s economic activity. Shopping at fresh produce markets and farmers markets can help drive the local economy while reducing waste from store packaging.

It can also be cheaper to shop locally, as there may not be as many mark ups on produce. Local businesses are vital to our everyday lives, especially now that Australia’s economy is recovering in the wake of COVID-19.

7. Spend on Quality Over Quantity

According to the Australian Bureau of Statistics, Australians send an average of 23 kilos of textiles each to landfill annually. When it comes to clothing and household items, go for quality over quantity and buy with longevity in mind. For example, it’s better to buy a coffee maker that will last 5-10 years than to buy a cheap one that will break in a year.

It takes small changes and a little know-how to live a more sustainable life. By striving to adapt to an eco-friendly lifestyle, anyone can save money by going green. For more saving tips and money advice, discover additional articles on our blog.

Can’t decide whether to take out a cash advance or payday loan? Given how may financial options are now available, finding the right one for your circumstances can be a confusing process. Cash advance loans and payday loans both have different benefits and conditions. To help you make the right decision, learn more about each type of loan below.

What is a Cash Advance?

Cash advances provide a fast way of acquiring a loan when you don’t have money to pay for something essential. This type of loan is suitable if you need a small amount of money urgently. Often referred to as a short-term loan, a cash advance loan can be taken out through your existing credit card.

Got a broken down car? Need emergency home renovations? Or maybe you’ve just received an unexpected medical bill? If your savings won’t cover the cost, a cash advance loan may be your best option.

Before applying for a cash advance, make sure your lender is legit and not a scammer. You should also check the terms and conditions of your loan to familiarise yourself with the repayment process. Find out what the interest rate is and if there are any penalties for missed repayments. Only take out the loan if you think you can manage the repayments.

What is a Payday Loan?

In Australia, payday loans are short-term loans that typically lend small amounts (usually between $100 and $2,000). You can take out a payday loan and get access to funds on the same day if you’re running out of cash.

Charges and fees on payday loans are capped by the government in Australia. Generally, the fees included in a payday loan include:

• Establishment fee (20% of the loan amount)
• Monthly account keeping fee (4% of the loan amount)
• Government charge
• Default fee
• Enforcement expenses.

Lenders are not permitted to charge interest on the loan.

Payday loans can be deposited directly into your bank account or deducted from your salary. Your reimbursements will normally be deducted on the day you get your paycheque, so ensure there is sufficient money in your bank account to avoid defaulting on your loan.

What’s the Difference Between a Cash Advance and Payday Loan?

Now that you know more about each loan, we can explain some of the key points of difference when it comes to cash advance vs payday loans.

Borrowing Limits

Cash advance loans have pre-set borrowing limits and can usually be accessed at any time. You may be suited to this type of loan if you’re not sure how much money you’ll need. It’s like a credit card, providing you with access to funds whenever you need extra cash. After you’ve repaid a cash advance loan, you may be able to withdraw money again if you need more funds later.

A payday loan gives you a lump sum, which can be helpful if you need a one-off amount. Payday loans can be used for all kinds of things, such as home repairs and renovations, medical costs, debt consolidation and holidays.

Repayments and Interest

Both loan types entail regular repayments. Cash advance loans are usually paid back in monthly repayments, with charges depending on the borrowed amount, your previous balance, accruing interest, and other factors.

The interest rate on a payday loan can be fixed, where it remains stable throughout the loan term. It’s also possible to get a variable interest rate with payday loans, which means the amount of interest can rise or fall depending on market rates.

Loan Terms

Cash advances have no set term and you can borrow again after the funds (plus interest) have been repaid. You’ll repay a set amount or around 2% of your monthly balance, whichever is greater.

In contrast, payday loans have a fixed term and must be repaid in full by the end of the loan term. Your monthly repayments will be set out in the loan contract, so you’ll know how much will need to be paid back each month. The interest rate on a cash advance, given the added convenience, can be slightly higher than on a payday loan.

If you found this article useful, check out some of our other blog posts for more financial tips that can help you achieve your goals.

One of the many benefits of living in Australia is our country’s welfare system, Centrelink. Although it provides a financial safety net when you’re underemployed or unemployed, living purely on Centrelink income can be tough, but not impossible with careful budgeting. If all else fails in the short term, we do offer loans for those on Centrelink.

Join us as we look at the best tips for making Centrelink income work for you.

How Does Centrelink Income Work?

The amount of Centrelink income you receive can vary depending on your individual situation. This figure is calculated according to a set of conditions set out by the Australian Government.

To apply for Centrelink, you’ll be required to provide the following information:

• Relationship Status – If you’re in a relationship, this may impact the amount of income you can receive.
• Living Situation – Are you living with your parents or family members?
• Personal Income and Assets – If you currently earn over $437 a fortnight, your benefits will start to reduce. Similarly, all investments (such as property, shares or inheritance) need to be declared.
• Dependents – Having any dependent children will impact your Centrelink income.

Using this information, Centrelink will perform a range of mandatory income and personal asset tests to determine the income you’ll receive. For example, if you’re single with no children, over 18 and live away from your parents, you’re entitled to $462.50 a fortnight.

Due to the global coronavirus pandemic, the Australian Government has introduced the Coronavirus Supplement. This tops up your regular Centrelink payment with an additional $250 a fortnight (if you meet the necessary conditions). This amount will be paid until the 31st of December 2020.

If you’d like to check your eligibility, visit Services Australia.

Budgeting Tips and Making Your Centrelink Income Last

Once you’ve received your first round of Centrelink income, you’ll be in a perfect position to create a fortnightly budget using the following steps:

1. List your regular, fixed expenses like rent, food, bills, transportation, health insurance, monthly subscriptions and credit card repayments etc. When creating this list, it’s helpful to write down when each expense is paid so you can best allocate your funds.
2. Deduct these expenses from your fortnightly Centrelink income.
3. If there is anything left, save this money for a rainy day, or keep a percentage for discretionary spending on items and services that you want, rather than need.

Stretching Your Payments Out

Creating (and sticking to) a budget is great for making the most of your Centrelink income, but did you know you can stretch these payments out to work in your favour?

• Apart from rent, your grocery bill is likely the biggest expense in your budget. But there are ways to save money on groceries, such as leaving the kids at home or buying in bulk. If you’re interested in reducing your food bill even more, read our handy tips

Even though they’re fixed expenses, your electricity, water and gas bills will fluctuate depending on usage. Starting with your electricity bill, you can help reduce this by doing things like switching to LED bulbs and air-drying your washing. Check out more ideas for reducing your electricity costs

As technology progresses, credit card fraud has become a real danger in today’s online-based society. Imagine one morning waking up to charges you didn’t make and hefty overdraft fees. While there’s no guarantee you’ll never be a victim, here are 5 ways you can try and prevent credit card fraud.

#1: Secure Your Computer Systems

Cyber criminals can steal your financial details by hacking into your computer or phone. If you do your banking online (like most people these days), it’s vital to stay digitally protected against spyware and viruses. Hackers can infiltrate your computer through web browsers, emails, or infected files, potentially compromising your personal data.

It’s a good idea to install anti-virus software to safeguard your digital devices. Be sure to avoid clicking on links in spam or scam emails and try not to visit or do your online shopping on websites with questionable security.

#2: Look for Security Certificates

Checking the padlock icon in the internet bar is the simplest way to know if you’re accessing a protected site. Also make sure that the web address in the address bar starts with ‘https’ to confirm you are indeed on a secure web page.

Transport Layer Security (TLS), and Secure Sockets Layer (SSL) are features of a website used for sensitive information encryption, providing data integrity and privacy between a web browser and a server over a computer network. Upon installation, security certificates activate the https protocol and padlock, which enable secure connections between browsers and web servers.

#3: Beware Identity Theft

Your identity is one of the most valuable assets you possess. It’s important to ensure no one uses your personal information, such as your name, social security number, or credit card number.

To protect your identity, destroy any documents that may contain personal details such as your birthday, address, and tax file number. Sensitive documents include bank correspondence (bank account or credit card statements) and any documents or letters from the government.

Opportunists can also access your letterbox. Secure your mailbox with a lock or use a PO Box. If you’re going away for a long time, make sure to either have a trusted person collect your mail for you or put a hold on it.

#4: Be Careful at ATMS

Criminals are known to hang around ATMs looking to steal credit card details and security pins. To protect yourself, always cover the ATM keypad and look around if someone’s lurking when you enter your PIN.

There’s also skimming to worry about. This is done with a card skimmer, a small electronic device that can be fitted to ATMS or handheld to intercept data and steal pin and credit card numbers. Minimise your risk of skimming by inspecting the ATM card reader to see if it’s been tampered with.

#5: Stay Informed of Scams

Most people would never think they’d fall victim to a fraud or scam. However, this mindset is what the scammers target. Thousands of scams happen every day but keeping up to date with the latest fraud or scams will help you avoid becoming a casualty.

It’s important to always be vigilant. Look out for suspicious emails asking you for personal details or requesting you to click on a link or open an attachment. You should also review your credit card statements monthly to check for any bizarre details. If you think you’ve been scammed, inform your financial institution at once and report it to both the authorities and the ACCC (via Scamwatch).

If you liked this article, learn more about Credit Cards for Beginners.

Now more than ever, it’s so important to save money where we can. To help you out, we’ve put together a list of the best shopping apps to save money in Australia around Christmas.

Shopback

Want to get paid each time you shop? Well, with Shopback you can. Shopback’s 5 million+ members accumulate cash each time they buy something from merchants like Amazon, Catch.com.au, Booking.com, Uber Eats, ASOS and more.

Simply search on Shopback for your store, purchase an item, and receive an order confirmation to get cash deposited directly into your bank or PayPal account. Shopback gets paid a commission when you buy from their partners and a portion of that cash is passed onto you.

Honey

What started off as a browser extension that applies discount codes to your cart is now a shopping app to save you money! The Honey app showcases millions of your favourite products, complete with current discount codes so you can find the best deals. All you need to do is copy and paste the discount code to your cart and check out from one convenient location on your phone (even if you’ve shopped from multiple stores).

Stocard

It’s difficult to find a retailer without a loyalty program for their customers these days. But remembering to accumulate points or finding the loyalty card when you go to pay can be tricky. Stocard solves these problems. The app stores all your loyalty cards digitally, so you’ll never miss out on savings again. You can also set-up mobile payments in Stocard which let you tap and pay with your phone via the Mastercard® network.

Groupon

Since 2011, over 3.65 million people in Australia and New Zealand have used Groupon to claim massive deals from businesses across categories like food, entertainment, technology, sports, beauty, and more. Download the app to access a vast array of exclusive deals and coupons from thousands of retailers.

Catch

Want access to countless deals from household brand names in fashion, lifestyle, pet care and tech? Australian online marketplace, Catch.com.au, will bring them to you! You can also sign up to receive push notifications straight to your phone, meaning you’ll be the first to know about new deals.

Gumtree

One of the oldest players in the online marketplace game is Gumtree. Here, you’ll have access to millions of listings from local and interstate sellers and service providers, making it one of the best shopping apps to save you money while directly supporting your local community.

Kogan

Kogan is an award winning retailer dedicated to making high-demand products and services more affordable and accessible. Their app does a fantastic job of keeping users up to date on recent price drops and new products across electronics, appliances, hardware and homeware categories. Join their Kogan First program and you’ll even receive free express shipping.

UNiDAYS

Uni students, this is for you. UNiDAYS gives higher education students free access to discounted deals from fashion, technology, lifestyle, food, wellness and beauty brands. It’s not just a shopping app to save money; UNiDAYS curates a personal feed for each student, so they can access the very best content from brands all over.

Prino Pro

Think of Prino Pro like your very own bargain hunter. The app lets you create a list of your favourite products to buy at the best possible prices. Receive notifications when prices drop and access coupons from retailers like Chemist Warehouse, JB Hi-Fi, The Good Guys, Bunnings and more.

Etsy

Want to save money, support independent sellers and find vintage treasures? You can do it all with Etsy. Renowned as the global marketplace for handmade, unique and creative goods, use their app to save money shopping and speak directly with Etsy sellers to receive tracking updates and the scoop on new products.

No matter which of these apps you choose, you’re sure to see your savings grow as we close out this year. Happy shopping!

There’s no greater pleasure in life than getting together with friends and family for delicious food and drinks at your favourite restaurant. We’d all like to do this more often, but it can be costly. The good news is, there are ways we can keep dining out without breaking the bank.

Check out these tips for eating out on a budget so you don’t have to sacrifice your love of great food and drinks!

Time Savings

Happy hour, cheap Tuesday and other weekly meal deals provide the perfect excuse to go out for drinks and food. You’ll be spending less, but still treating yourself. To find the best weekly deals or Happy hour specials in your area, do a quick search online. Apps like The Happiest Hour can help with this, so the only thing left to do is invite your friends and drink up.

Online Specials

Dining out on a budget has never been easier as long as you’ve got an internet connection. A simple Google search for online restaurant specials and coupons will provide you with a huge range of websites bringing the best online specials straight to you.

Some of our favourites include Scoopon, Groupon and Eat Club – a world-first app that works with restaurants to promote last-minute specials in your local area when they’ve got empty tables.

Be Open to New Places

The convenience and reliability of dining at your favourite local haunts is always tempting. However, eating at your usual dining hot spots can sometimes mean you’ll be paying a premium for your meals. Why not try somewhere new? With a little adventure, you could find yourself chowing down on the most flavour-packed Saag Paneer you’ve ever tasted (and at a fraction of the cost of your usual Indian restaurant).

BYO

Love to wine and dine? Instead of paying for mark-ups on drinks, look for BYO venues to reduce costs without sacrificing a delicious pairing of French red wine with your Buoef Bourguignon.

Typically, the cost of wine can be marked up anywhere from 120% to a whopping 250% at a restaurant, so there’s no doubt you’ll save some serious cash the next time you BYO.

Ditch the Soft Drink

Trading your soft drink for water is another great way to save money while eating out on a budget. A glass of Coca-Cola can end up costing you another $5.00 on top of your meal, so swap this for water and you’ll find that after 3 or so meals, you will have saved enough money to treat yourself to another restaurant meal.

Do Breakfast or Lunch Instead of Dinner

Research indicates that restaurants face more intense competition for night diners, which means they’ll often have similar dishes available for lunch at a cheaper price the next day. This also applies to breakfast too, so instead of going out for dinner, do breakfast or lunch instead to save money.

Skip Dessert

If you have a sweet tooth, you may think it’s preposterous to skip dessert entirely. But hold that thought! Trade your $15 single-serve of tiramisu for a $5 takeaway ice cream instead so you can satisfy your cravings for a fraction of the cost.

Get Rewarded to Dine In

It really is possible to get rewarded for dining in. How? Apply for a credit or debit card that’s paired with a rewards account to put cash straight back in your pocket. For example, the American Express Platinum Edge credit card will give you 1 point per dollar spent, which is about 0.5% cashback on your restaurant bill.

As you can see, there are plenty of strategies out there to help you eat out on a budget, because life should always be full of good food, good wine and good times.

Buy Now Pay Later (BNPL) purchases are on the rise in Australia. The Inside Australian Online Shopping report by Australia Post reveals that 6.7% of online payments are now made via BNPL platforms (such as Afterpay, which recorded $2.3B of purchases in the latter half of 2018). While PayPal is still the dominant method of payment for online shopping, accounting for almost half (48.8%) of all e-commerce purchases, BNPL is gaining ground on debit cards (15.5%) and credit cards (24.4%).

As an increasingly popular payment method among Australians, it’s no surprise more people are using BNPL platforms on the daily. If you’re thinking about giving it a try, make sure you’re fully aware of how these schemes work before signing up.

Here’s a snapshot of everything you need to know about Buy Now Pay Later.

How do BNPL services work?

BNPL services provide a method of paying for items you want or need but can’t afford right now. You simply pay for them over time via a payment schedule. Afterpay spaces out payments over a 4-week period, while ZipPay gives you the freedom to choose your repayment schedule – weekly, fortnightly or monthly.

Unlike credit card payments, you don’t pay interest on these purchases. And unlike Laybuy, you get the item immediately instead of when it’s fully paid off. BNPL platforms make their money from the merchant, which is why you’re rarely charged anything extra for using these services.

This is all sounding pretty good, right? But what’s involved with singing up for a BNPL service?

Using a BNPL Service

Signing up for BNPL is easier than applying for a credit card, which is part of the appeal. Simply make a purchase with a partner retailer and choose the BNPL provider as your payment method. Once the order is approved, your account will be automatically created. You may need to provide proof that you live in Australia, ID and your bank card details.

Potential Late Fees

As with all repayment schedules, it’s imperative to pay on time to avoid late fees when using a BNPL service. Afterpay can charge up to $10 in late fees for orders under $40. This increases for orders over $40 – so you could find yourself with fees totalling up to 25% of your order. ZipPay has a $5 late fee and if your payment is rejected by your bank, you’ll receive a $15.00 dishonour fee.

Purchase Limits

If you’ve linked a debit card to your Afterpay account, you can’t have more than $500 outstanding, or your next purchase will be denied. With a credit card, you’ll receive a cap of $1,500. Similarly, ZipPay accounts are capped at $1,000 (it’s possible to increase your credit limit to $3,000 if you meet certain criteria).

Impact on Loan Applications

Used responsibly, BNPL services have a neutral impact on your credit rating. However, most BNPL companies reserve the right to report issues (like missed repayments) to credit bureaus. It’s important to remember this to ensure you can apply for loans successfully in the future.

Helpful Tips

We all know online shopping can be a little addictive, so it’s necessary to manage our spending. Before adding to cart, work out how much disposable income you have available each month to spend. Being aware of this amount will help you budget any potential repayments from BNPL services – whether they’re weekly, fortnightly or monthly.

There are lots of benefits associated with increasingly popular BNPL services. However, they aren’t risk free and can accumulate into multiple repayments beyond your financial means. But if you see yourself as an organised person and not prone to overspending, BNPL may be for you! For everyone else, you’re probably better off paying upfront.

Check out more money tips on the Cigno blog.

When you’re living day-to-day on a modest income, it can feel impossible to make significant progress with your savings account. This can become frustrating if you’ve got financial goals like buying a car or putting down a house deposit, but there are ways to increase your savings quickly while you’re not earning a lot.

The key to fast-tracking your savings is working out how to budget and save money on a low income. Here are some of the ways you can make this easier for yourself.

Change Your Mindset

The first step in changing your savings trajectory is to change your relationship with money. This isn’t always an easy step to take, but it’s important if you really want to discover how to save money fast on a low income.

It’s all about making this firm commitment to yourself, your family, and your bank account: you will not indulge in unnecessary purchases until your savings hit the next milestone.

Note that we say the next milestone (not your final goal). This is because it’s unrealistic to cut off all your leisure spending indefinitely until you reach your ultimate goal. It’s important for your long-term motivation to set milestones along the way at which you might reward yourself for your progress. And that’s where the next tip will help…

Make a Budget

This advice appears in just about all our posts about saving money, but there’s a good reason for that. Without a written budget, it’s impossible to even track your savings goals – let alone achieve them.

Depending on how your salary or wages are paid, you might choose to map your budget out weekly, fortnightly, or monthly. Either way, insert your income and all ongoing expenses (e.g. rent, bills, groceries) to see what your usual balance will be. From there, you can make the appropriate decisions about where you might be able save money on costs or cut down on discretionary spending.

Save on Household Bills

Some utility providers will offer payment plans for customers on low incomes. Speak with your electricity, water, and/or internet company to see what options might be available to you.

Aside from that, there are plenty of nifty things you can do to reduce your expenses on many of your regular bills. Try these articles for specific ideas:

• Handy Tips to Save Money on Groceries
• 7 Tips to Save Electricity at Home
• 6 Fuel-Saving Tips

Automate Your Savings

When you manually move your income into your savings account every time, it becomes every easy to skim some cash off your transfer or even forget altogether. However, if you set up an ongoing automated transfer every week, fortnight or month, this will ensure you always have a consistent amount of money going into your savings account.

Stay Out of Debt

Sometimes taking out a loan or using your credit card is your only option. But unnecessary debt can prolong your journey to financial freedom, so only fall back on these options when you really must. And when you do, consider choosing an option that you can pay back rapidly, such as a quick cash loan from Cigno.

Repayments can take a big bite out of the money you set aside for savings on each payday, so sorting out your debts is an essential step in getting your finances back on track. In fact, you may even be better off using any extra money to pay off debts early rather than putting it into your savings – just watch out for any fees for advance payments.

Earn Extra Money

One way to save money fast on a low income is to earn more money in the first place. Of course, you can’t magically turn a low-income job into a high-paying gig overnight. But what you can potentially do is pick up a side hustle to supplement your pay. From money-making apps to selling items online, here are some ideas to get you started.

We hope these suggestions have helped you work out how to budget and save money on a low income. Just remember there are always options available to you, and some smart choices and small sacrifices can make a big difference in the long run.