How to boost your savings.
If you’re not fighting financial fires right now, you might be in a position to boost your savings efforts and reach your goals sooner rather than later. Whether you’re saving for a rainy day, a big purchase or just a treat, these 5 tips should speed things up.
1. Press pause on non-essentials
Most of us haven’t been able to indulge in the luxury of eating out, going to the cinema or going on holiday. It can be hard not doing the things you love, but there is an opportunity to create your own silver lining. Now is a great time to re-visit your budget to see where you can cut back on non-essential expenses and use that money to boost your savings. Remember that these sacrifices are likely to be temporary. Going slimline on your spending while you can, could bring significant benefits to your savings.
2. Become a conscious shopper
Feeling bored, lonely or anxious are feelings that most of us try to avoid. The internet, readily available at our fingertips, provides the perfect distraction. But whilst panic buying or online shopping can make you feel better in the short term, it can have a negative impact on your budget. Do you really need all of the things you are buying? Are there other ways to feel better? Taking the time to stop and think about every purchase you make will reduce the risk of over-spending.
3. Make your goals visible
We often spend on autopilot, especially when making lower value purchases. Our long-term goals are far from our minds. Whether your goal is to start a family, buy a car or start a business, keeping your big goals top of mind is a great way to motivate yourself to spend less and save more. That could mean writing your goals down on a post-it or putting photos up on the fridge, for example. These constant reminders will help to keep you focused on the long term.
We know visible signs of progress are proven to help us form positive habits. Use an app to track your savings, write down your monthly savings in a notebook – or whatever works for you.
4. Use leftover money to pay down debt
Paying down your debts might not be the most appealing way to spend the money you’ve saved, but it could save you more dollars in interest over the long term. Bear in mind that using your leftover money to pay off debt means that you won’t be able to access your money. If you don’t have emergency savings to fall back on, boosting your savings instead might be a sensible option.
5. Reward yourself for your savings efforts
Cutting out life’s luxuries isn’t fun, but working towards a reward you value, is. Incentivise your savings efforts with a monthly reward. Or, you could flip this approach on its head and reward yourself upfront – for example, buying yourself a coffee machine now could help you save thousands of dollars on café bought coffees over years to come. Investing in some exercise equipment for your home, could mean spending less on a gym memberships or yoga classes.
Once your new saving habits are in full swing, you’ll need somewhere to put the extra money. Looking for a savings account that offers no-fees and a competitive interest rate will ensure your dollars don’t go to waste. And, if you need some help creating a savings plan take a look at our savings calculator.
This information has been provided without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs. All loans are provided by Beyond Bank Australia Limited, 100 Waymouth Street, Adelaide, SA 5000 ABN 15 087 651 143 AFSL/Australian Credit Licence 237856. © 2020.