5 Simple Steps to Saving

April 24, 2014
Soula O'Meara

It is not always easy to save for your first house deposit or that magical holiday , but these five easy strategies will help you to look at saving differently and get you well on your way to your savings dream.


1:Have a Clear Goal

A clear focus will make it much easier to stick to any savings strategy.

So what is your goal? It is important to make your goal realistic and achievable. For example if you were saving for your first home.  You need to work out how much of a deposit you need and therefore how long you’ll need to be able to save that amount.

It is important to note that saving requires a change in attitude towards money, and the trick is to work out where you can make the biggest savings for the least amount of pain.


2:Monitor Your Money

You cannot start to save money if you do not know where your money is being spent.

The easiest way to do this is to write down exactly what you are spending your money on.  Once you have done this it is easy to see where you can reduce your spending and start your realistic savings plan.

Start by looking at the small things first.  Do you need to buy your lunch every day? Can you take public transport?, Do you still need/use that gym membership?

Then start to look at your fixed costs.  Can you save on accommodation?, are you able to  move somewhere cheaper? or maybe move in with family for a while?, Is your phone contract the most cost effective for you?

Once you have worked out where you can make your savings, the next step is to create a budget.  This is not as daunting as it sounds as there are many templates online for you to take advantage of.

Remember to be realistic with your savings.  The more realistic the plan the easier it will be to stick to.


3:Eliminate Debt

You need to reduce any personal loans and credit cards.  The best place to start is with a Mortgage Broker. They have access to many different banks and loans and are able to get you the best interest rate and product possible.

If you can… reduce your credit card limit or swap it for a debit card.  The advantage of a debit card is that you will only be spending the money you do have.

Set up automatic payments to make sure the debts are paid on time. This will also help you when you come to get a home loan as it will show that you can pay off your debts and will also give you a better credit rating.

If you need to make large purchases consider Lay-by or paying by instalments.  You may be surprised at how many businesses allow this as a payment option. After all if the longer the money is in your account the more interest you earn.


4:Set up a Savings Account

The easiest way to save money is if it doesn’t come into your hands, so you can open a high interest bank account to place your savings into.  Then you can set up an automatic transfer from the account your pay goes into to your savings account. This way you do not need to remember to save, you can just sit back and watch it grow.

Once you have a sizable amount in your savings account, lock it into a fixed term deposit. This will help you get to you savings goal quicker without even trying.


5:Evaluate

Is it still working for you?  It shouldn’t be a struggle.

Don’t be afraid to adjust your savings plan. If you are finding it difficult, change it.  It just means that it may take a little longer to get to your goal, but you will still get there.

Unexpected cost can come up and may mean you cannot meet your monthly savings goal. Don’t get disillusioned. Keep your eye on your goal and get back to your savings plan as soon as you can.

Remember the more you save the faster you will get to your goal, so if you are handling your savings easily, re-evaluate and see if you can add more to your savings. Tax return cheques, bonuses and dividends from shares are a quick way of boosting your savings amounts without you having to do without.


If this is something you have been thinking about or want to start doing. Please feel free to contact me and I will be happy to talk it over with you and assist you to set up a plan. Call me on: 0414 843 060 or email me at: soula.omeara@mortgagechoice.com.au. 

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