Throughout life we set ourselves a range of goals; land that amazing job, move overseas, find love, buy a car or travel the world. One common thread with a lot of our goals is saving money.
Whether your goal is to save money for a rainy day, a flat screen television or for a home loan deposit, knowing what you want and setting up a savings plan will get you well on your way to reaching your goal.
Kick-off your savings goal
- List your goal/s
- Set a realistic timeframe
- Make a list and track where your money is being spent
- Reduce your spending and limit credit card use. Every little bit helps so consider packing your own lunch and cutting back to one coffee a day.
- Put your money into a savings account that will earn you interest, on top of your regular deposits
Savings accounts are designed to help you save money faster by allowing you to earn interest on top of your regular savings deposits. They have a higher interest rate than a transaction account and make withdrawals more restrictive, helping you to grow your money.
A lot of savings accounts are online so you can easily transfer money from a linked account into your savings account.
Savings accounts all vary in the amount of interest they return, which is why it is so important to search, compare and apply to help achieve your savings goal.
Don't forget the rainy days
Having some money aside for emergencies or unexpected events, is always a smart idea. You'll sleep better at night knowing you have back-up funds if you fall on tough times.
Your rainy days stash of cash should be kept separate from your other saving goals and only dipped into during an emergency. You can decide what amount you feel comfortable putting away, however three months’ worth of expenses is considered a good bench mark.