How do I save more money?
When you save money, ‘there is nothing better than that feeling of getting on a plane knowing your holiday is starting today.’
The excitement of the days and weeks ahead, new places sights smells and tastes.
Deciding where and when to go is all part of the dream holiday planning fun.
To make your dream holiday or savings goal a reality you will need some money, what-ever your circumstances, once you start a regular savings plan you may surprise yourself how quickly you can get the money you need.
Here’s 7 tips to help you get away sooner:
1. Set up a savings goal and stick to it
When you set yourself a savings goal it’s important to get a savings plan together so you can make your dream a reality. After all, a goal without a plan is just a wish. Therefore, do a little research or take time to:
- Know how much money is needed
- Have a clear savings plan
- Regularly review your progress
- Have a specific saving time frame
2. Use a budget to ensure you save a little money for a rainy day
By taking charge of your money, whether you have a little or a lot, you will ease money stress and feel more secure and in control. Doing a household budget reveals whether you’re spending more or less than you can afford. It enables you to direct your money to where it matters most, so you can stay on top of bills and start putting money towards those future goals like your dream holiday.
3. Use a shopping list to get the most value out of your family grocery budget
Making small changes in your life can fatten your savings and help you budget better. Next time you’re out grocery shopping, follow these money-saving tips:
- Take a list so you don’t forget anything. Only buy what’s on the list. This makes it easier to stick to your budget.
- Put your grocery money in an envelope. Don’t take any other cash or cards with you so you can only spend what you have.
- Buy in bulk and only go grocery shopping once a fortnight.
- Use all the food in your pantry before you buy more.
- Eat a meal or snack before you go to the supermarket. When you are not hungry, you tend to buy less food.
4. Keep your savings in a high interest account – every cent helps you to save more money
Savings accounts are specifically designed to help your savings grow faster. They offer a higher interest rate than basic transaction accounts. But not all savings accounts are equal. Remember with more money saved, you will be able to take that dream holiday sooner. To decide which account is best for you, compare these features:
- The interest rate and how regularly you receive the interest
- Minimum and maximum account balances
- Compound interest versus simple interest
- Account keeping fees
- What interest you lose if you withdraw money and what rewards you get if you deposit money regularly
- Whether a linked account is required
5. Use an offset account if you have a mortgage
Putting your money into a bank account doesn’t mean you should forget about it. It’s your money so make sure it is working the way you want, for example, a transaction account linked to a mortgage account reduces interest payable as interest is only charged on the net balance, that is, your mortgage balance less your offset account balance.
6. Get every tax benefit you are entitled to
Knowing where every tax dollar is going and why opens up a wealth of savings. So it pays to get the right kind of advice to put the right strategy in place that makes the most of your money. Financial advice gives you confidence that your future plans are achievable. If you’re not on track to achieving your goals, it can guide you on how to maximise savings, show you how tax is calculated along with showing you ways to reduce tax through salary sacrificing super, claiming deductions and donations, or reducing investment spending, to uncovering any government assistance you’re eligible to claim.
7. Stay informed about saving more money
A great way to stay on track and turn your savings goal into reality is to become savvier with money generally.
ASIC publishes a guide about other simple ways to save money.
If you’d like to chat about finance, please contact us.View more