March 10, 2016
Gayle Roberts

When my children were little, they used to save their pocket money in separate envelopes. That was a while ago!  Now it’s easier to save with individual online accounts, example: ING Savings Maximiser getting 3.50%. So you can open a couple (a) for a holiday (b) for the important home purchase (c) for a rainy day.   When I was at Uni and having to spend hours at night doing assignments, I used to “reward” myself by taking my kids to either a movie or coffee with my girlfriends – then the task at hand didn’t seem so daunting as I had both a goal & a “reward” (unfortunately today’s rewards are usually about food or chocolates!).  But the important TIPS are to write down your goal or goals (buying a house, car or even a boat to put in the marina; or saving for an overseas holiday). I’m a firm believer of a little to be saved for a ‘rainy day’. Call me old-fashioned but when the car suddenly needs a $900 overhaul, it’s not such a full-on financial shock.  We have clients who have 9 separate online accounts & each one nicknamed so they know what their money is being saved for.  Some even have nicknames “dream holiday’; ‘my new car’; “my home”! For the timeframe, work out the amount needed (example overseas holiday - $15,000 and we want to go in August this year; have $10K currently saved and need another $5K. So $5K divided by 5 months = $1K a month – simple!

So here are my TIPS:

  1. Write down your goal/s (goal setting)
  2. Write down the timeframe (remember to be realistic and it’s achievable) – also consider saving each fortnight, weekly or monthly using linked to your payday
  3. What down how much you need to save – if buying a property, decide on the deposit amount ($500K home = $50K deposit = home purchase in August = $10K a month to be saved) Piece of cake!  And don’t forget to add in the interest you’ll earn on your online savings account!
  4. Check out your budget and do some planning – if $10K is impossible because you’re renting currently, then $5K a month will take you to purchasing around November/December (9-10 months of savings).  When goal, budget and savings plan are written down, the online accounts opened up and an automatic savings plan in place, it’s set and forget.  It’s always amazing how we tend to re-adapt to the “new” amount in our pockets post payday.
  5. If saving for long-term goal (example buying a boat when you retire in 12-months), So a person had $30K in savings now, it’s better to deposit that in a term deposit account to lock it away to earn high fixed interest and stop the temptation of spending it during the year.
  6. Reward yourself - everyone knows the TIPS such a bringing in your lunch from home; not buying that morning latte; saving in the pink piggy – but I’d like to always “reward” yourself when you break up your goal.  If your “dream home” goal is $50K to be saved in 5-months, that’s a big goal – so on the last day of every one of the months, “reward” yourself. Example – if you wanted to buy an apartment in Port Melbourne, then after the 1st month of $10K savings, have a Friday night drink at The Pier and watch the sunset (it will make you even want to save harder); or after the 2nd month of savings towards your “dream home” goal – take the children to Delish Fish and enjoy your take-away sitting on the wharf watching the cruise ships leaving Station Pier.


Posted in: Tips

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