Whether you’re saving for a holiday, new car, first home or perhaps a luxury item the first steps to success is setting yourself a savings goal. It should be measurable, realistic and timely. You might feel ambitious and set a super high savings goal, but you’d likely be setting yourself up for failure.

When deciding on a savings goal, think of a specific purchase or benchmark you could realistically reach in 12 months. The goal should require a little sacrifice when it comes to spending but you shouldn’t overreach.

Be picky about where you keep your savings
Have you had the same savings account since you were a young teen? It might be time to look at what banks have to offer.

Savings accounts vary when it comes to interest, fees and minimum balances, so do your research and find one that’s right for you. Consider extra costs such as monthly service charges and ATM fees.

The interest rate might sound minimal at first, but it adds up. Every little bit counts when you’re saving toward a specific goal.

Set up an Emergency fund
Life is fairly unpredictable, but one thing you can predict is that some type of unexpected expense is going to come up.

If you’re smart about saving, you’ll have an account dedicated solely to emergencies. Your savings account might be for big purchases, like a down payment on a house or a car, so it’s important that you don’t touch that money.

An emergency account can also be used if you lose your job or have to go to the hospital. This ensures you have something to fall back on without having to sacrifice the big purchase you’ve been saving for.

Cut back on spending
By making a few adjustments to your spending, you could end up with a whole lot of cash in your account by the end of the year.

Here are a few tips:

  • Pack your lunch for work instead of buying lunch.
  • Utilise the free coffee in your work kitchen instead of buying it from a café.
  • If you’re unsure about a new purchase, don’t buy it. Chances are you don’t really need new tops, pants, or headphones.
  • Instead of catching up with friends over dinner offer to cook for them – you’ll be surprised at how much food goes to waste or over its use by date when you’re eating out all the time.
  • When grocery shopping, make a list of essentials and don’t drift away from it. You’ll be surprised at how much a few packets of chips and soft drinks add up to.

Looking for more advice on budgeting and saving? Contact our team today on 0421 996 796 or fill out the enquiry form and a member of our team will be in contact


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