Creating a budget and savings plan

A savings plan is a great way to help you save for a goal or learn how to be more disciplined with your money. It doesn't have to be hard or complicated to have a savings plan. In fact, you can set up a savings plan that will automatically transfer your desired amount into a savings account at regular periods (weekly or monthly for instance).

The majority of online savings accounts offer this service free of charge because it doesn't cost them anything for you to click a few buttons on their website. Many financial institutions offer incentives to help your savings plan work harder for you such as bonus interest for no withdrawals. Make sure you choose the right amount of money for you to regularly save when you set up a savings plan.

To begin your savings plan you should start with drawing up a budget. By looking at all of your outgoing expenses you will be able to get a better understanding of where your money is going, how you can cut back and areas where you can save.

Setting up a budget

  • Where is your money going? Write down all of your outgoing expenses including phone bills, rent, electricity, credit cards and everyday expenses like food and train tickets.
  • Where is your money coming from? Make a note of all your income streams including, wages, investments, pensions or child support payments.
  • Assess essential and non-essential expenses. What outgoing expenses are essential and which can you possibly cut-down on or cut-out completely? Do you need that gym membership when you have the equipment at home? Can you pack your own lunches instead of buying them every day?
  • Work out a budget for all your outgoing expenses and stick to it. If you budgeted $100 for food each week, make a note of all the money you are spending on food and don't go over it.
  • Re-assess your budget regularly to reflect any changes to your financial situation.

If you do well and stick to your budget you should find yourself with money left over at the end of each month. Use this money to implement your savings plan by putting it into a high interest savings account or investing it.

Use the RateCity savings account guide as your starting point, compare high interest online savings accounts and follow our news articles to get the latest savings tips.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.