Tips for saving money
Being a good saver has plenty of advantages beyond your short-term financial goals. It can be the difference between keeping your head above water during difficult financial times and being in financial hardship.
Here are our tips to help you become a better saver.
1. Set a savings goal
Saving is easier when you have a goal in mind. It might be a holiday, a house deposit, or just a rainy-day fund.
To work out the amount you’ll need, be realistic about what you can afford to save each week, fortnight or month.
2. Make a budget
A well-planned budget will get you started on your savings path. A budget is a plan that shows how much money you earn, spend and save. It makes it easier for you to plan ahead for bills and groceries, see where you’re overspending, and find ways to save more money.
3. Pay off debt
Getting on top of debt will help you feel more in control of your financial situation. Make sure you factor debt repayments into your budget, and look into whether debt consolidation is an option for you.
4. Automate your savings
If you get your phone or power bill direct debited from your account, why not apply the same concept to your savings account? Simply set up regular payments to go into your savings account every day, week, fortnight or month.
5. Keep track of your expenses
Keeping track of what you spend will help you budget and save. It makes it easier to see where you can cut back on costs and put extra money into your savings account.
6. Search for discounts and rewards programs
Make sure you’re getting the best price by shopping around for deals, specials and rewards.
- Browse online to quickly compare prices on both everyday purchases and big spends.
- Get multiple quotes to compare the price of insurance premiums or electricity plans.
- Look for credit cards with reward points that you can redeem for gift cards, cashback and more.
7. Open a savings account
Open a savings account to earn interest on your money. Different savings accounts have different benefits, like bonus interest or flexible withdrawals, so compare multiple accounts to choose the best savings account for you.
Another option is an ‘untouchable’ account like a term deposit. A term deposit is a type of savings account where you lock the money into the account for a certain time and interest rate. It’s possible to earn higher interest if you lock the money away for longer, and it’s a little harder to access your money and spend it.
8. Earn bonus interest
Good savings habits can reward you with extra interest on some accounts. Be disciplined and it will pay off in the long run by helping you save a little faster.
How it works
Bonus interest varies with different accounts—some accounts need a minimum monthly deposit, some no withdrawals, and some have no conditions (check the account details before you open the account).
9. Cancel subscriptions
When you put together your budget, make sure you include all the services you subscribe to. This might include TV and music streaming services, news subscriptions or app subscriptions. Some of these services might only be a few dollars a month, but over time you might be paying more than you realise. If you don’t use these services often (or you’ve forgotten you even paid for them), cancel your subscription and move that money into your savings.
10. Automate your bills
If you struggle to remember to pay your bills on time, set up regular payments so the money is transferred out of your account on time. This way the bill is paid even if you forget about the due date. You’ll just need to make sure there’s enough in your account to cover the outgoing payments.
What to do if you have trouble saving
Sometimes having quick access to your savings can make it tempting to spend money. If you’re finding it too tempting, consider locking or hiding your savings account.
Block your savings account
Having a blocked savings account means you can’t withdraw money from that account. With this block in place, you can make your savings account untouchable but still deposit money to your account and watch your balance grow.
Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/manage-money/budget-saving/money-saving-tips
National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.
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