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How to Reach Your Savings Goal Now You Know How Much to Save
If you’ve never set a savings goal before, we’d like to help you on your way. Now that you know how long it will take to save your desired amount, there are some simple tricks you can do to achieve your goal.
1. Set Up An Automatic Savings Transfer
The first thing we recommend is to set up an automatic savings transfer to a high-interest savings growth account. You can do this with most online accounts yourself (here are some examples from NAB, CBA and ANZ). Or, if you are not very technical, chat to a cashier/teller at your bank. By transferring it to a savings growth account, you will be getting your money to work harder for you and earn more interest each month.
Once you have created a set-and-forget transfer, you take away the stress of having to remember to save AND it makes sure you save regularly. Ideally, you would set up the transfer to happen straight after your income reaches your bank. This will cause you to work your budget around what is available and secure your savings progress.
2. Weigh Up Savings Interest Against Debt Interest
If you have high-interest debts, you may want to consider the benefit of paying these debts off quickly before starting your savings journey. The reason for this is if you are only earning 4-5% interest on your savings account but you are paying 15% interest on outstanding debts, any savings you are making is eroded by the debt interest you are being charged and will eventually have to repay.
3. Reduce Your Expenses
The fact is, every little bit counts. So, if you have any subscriptions that you don’t absolutely need, cancel them today. When you leave a room at night, turn off the lights. After you have finished with your electrical appliances, turn them off at the wall. Instead of buying a coffee out every day, make it a special treat once a week and make your coffee at home instead.
These seemingly unimportant things can all add up. That $13 lotto ticket every week adds up to an extra $676 a year. And, if you drink a 6-pack of beer daily, that’s more than $3650 every year you could be putting towards your savings goal. It all adds up.
Happy Saving!
Disclaimer
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
