The process of saving money can be simple and straight forward, with the basic concept to put money into a savings account and watch it accumulate. But practising such principals isn't as simple, as we fight the temptation of shopping, attending pricey social events, holidays and dining out.
The key to saving money is to put away a set amount on a regular basis such as fortnightly or monthly and watch your money grow.
People save money for various reasons, some have a savings goal they want to reach, some want to save for a holiday and some want to save for their future. No matter what you want to save for there are a number of ways that can boost your savings such as an online savings account and term deposits which can both earn you a higher interest rate than everyday transaction accounts.
Money saving tips
- Open a savings account: Set up automatic transfers from your transaction account to a high interest savings account. This way you won't notice your money is missing and you are regularly making deposits into your savings account.
- Change your habits: Eat in more often, cancel your gym membership that you never use, limit your daily coffee consumption or walk to walk instead of paying for public transport.
- Cut back on everyday spending: You will be surprised how much you save from cutting down on the little things like buying coffee or lunch at work.
- Note where your money is going: Making a note of what you are spending your money on can help you identify your trouble areas.
- Want or need: The next time you go to buy an item think about if you want or need the item you are about to purchase. If you want it but don't need it, ask yourself if you want it more than you want the big ticket item you are saving for.
- New or used: Do you need to buy that item new? Consider borrowing your books from the library, visit an op shop for clothes, take to the local markets for fresh food produce, borrow items from friends if you only need to use them once.
- Save on utilities: There are plenty of ways to save by cutting back on your water and electricity use. Visit the Australian government website to get their top tips for saving energy – which will save you money in return.
- Don’t grocery shop on an empty stomach: It’s often said jokingly but it’s true, if you go food shopping on an empty stomach you will splurge. It’s also a good idea to take a list, a set amount of money and buy in bulk, less regularly.
Start saving money now with a high interest savings account, the table to the right lists some everyday high interest savings accounts currently advertised.