3 savings tips to boost your bank balance.
Saving money can be easier said than done, but without a good approach to your savings account, it can be incredibly difficult to put together enough money for key purchases like a new car, or life’s little luxuries such as going on holiday. A solid nest egg can also act as an invaluable buffer if you ever find yourself needing some extra cash.
Despite the importance of savings, many Australians find it difficult to set money aside on a regular basis. Fortunately, correcting this doesn’t have to be a huge challenge or leave you struggling to make ends meet. Let’s take a closer look at three simple strategies to grow your savings account balance and help you achieve your financial goals.
1. Create a budget.
The first step on the road to great savings is becoming more aware of where your money is going. Thanks to new technology like online banking and contactless transactions, it’s easy to think of cash as something you can access whenever you need to make a purchase. While this convenience is fantastic in many ways, it does make it slightly more difficult to visualise how much of your income is going towards essential and nonessential expenses.
To fix this, spend some time creating a thorough budget that outlines exactly how much money you have coming into your accounts on a daily basis. From there, it’s possible to look through your expenses and identify key areas where you can save. For example, if you spend $5 on coffee every day and switch to preparing those at home or the office, you’ll be able to save nearly $2,000 throughout a year.
2. Pay off your debts.
One of the biggest barriers to effective saving is having to dedicate a significant portion of your monthly income to pay off loans. In some cases, such as with a mortgage, this may be unavoidable, but wherever possible you should look to either pay off what you owe as soon as possible or consolidate payments to reduce the amount of interest accrued; allowing you to set aside more money for savings.
If you’re trying to save money, you may want to consider waiting before taking out a new loan. It can be tempting to borrow money if you’re aiming to purchase a car or other big-ticket item, but waiting until you’re more financially stable can help ensure the repayments don’t hamper your ability to grow your savings.
3. Grow your savings.
Lastly, you can help your savings grow by investing them smartly, then over time see the effect that compound interest has on helping to grow your savings. This can include popping your savings in a savings account or term deposit. Both these accounts can help you grow your money but there a few factors to consider when deciding which account type is best suited to your needs.
To find out more about saving and making your money work for you, get in touch with the Beyond Bank team today.