Have a goal

Ask yourself, what do I want to save for?

Your savings goal may be short-term like buying a TV or car; long-term, like purchasing a house, setting up an emergency fund or planning that next home renovation.

After you identify your savings goals, you can start to prioritise your savings and start working on your savings plan.

Start a savings plan

Now that you know what you’re saving for, create a budget as well as a long term money plan to map out exactly where you would like to be in the future. This could be a one year, five year or ten year plan with strategies to achieving each of your monetary goals. Aim to save a percentage of your income and set up regular debits to keep your debts and bills under control and paid on time.

Automate your savings

Setting up a recurring amount of money to be transferred regularly to your savings account should help relieve you of having to remember to make a deposit and reduces the risk of you spending the money before it’s saved. At Australian Mutual Bank you can arrange to have your pay directly deposited into a savings account and set up an automatic payroll split between accounts to help you save regularly.

Save money by changing your spending habits

Do you buy a coffee every day on the way to work every morning? Try switching from a large to a small, or having one every second day. Also you can try cutting back on eating out or ordering in. Saving money is about changing spending habits into savings habits. Examine your spending habits and be mindful of where your money is going.

Do a few changes and you will see how the impact of a few simple trade-offs can really add up in the long run.

30 June 2020