Saving
Reach your savings goals
Setting goals for yourself - whether large or small, short
or long-term - is exciting and motivating. Your goal could be as
simple as getting organised and putting some money aside for
emergencies. Or you may want to go on a holiday, buy a house or
car, or afford a comfortable retirement.
Whatever your circumstances, by working out your goals and
starting a regular savings plan, you can begin to make your dreams
become a reality.
Your savings goals
Smart tip
If you have borrowed money on a high interest rate, make paying
off that debt your priority before saving for other goals.
What do you want from life? Your goals may change at different
stages or events in your life. Perhaps you have a short-term goal
that you want to achieve in the next year or two, and a long-term
goal that could take you 5 or more years to reach.
Think for a moment, then write down some possible goals.
Now:
- What is your top priority?
- How much will it cost?
- When would you like to achieve it?
Use this savings plan to work out
what is realistic and affordable.
Savings goals calculator
Using the savings plan
- List your savings goals, such as paying off a debt, going on
holiday or buying a home. Work out how much money you need and how
long it will take you to save that amount.
- Write down ways you can save money to put towards your goal.
Use the budget
planner to see where you could cut back on optional extra
things like entertainment, dining out and shopping. Decide how long
you will need to cut down on those items to achieve your savings
goals.
- Print out your savings plan and put it on your fridge or
somewhere you will see it every day. This will keep you motivated
and on track.
Video: Amy talks about saving for a holiday
Savings Calculator
Amy works out the best way to save for her overseas trip.
For tips on how to save for different goals, see:
Saving for a short-term
goal
Short-term goals are things you want to achieve within the next
couple of years. These goals could be to pay off your credit card
debt, buy a new TV, go on a holiday or buy a car. Whatever you have
in mind, set yourself a realistic timeframe.
The best way to save for short-term goals is to reduce your
spending on non-essential items, like entertainment, dining out,
memberships or subscriptions. It is often easier to stay on top of
your spending if you use cash, EFTPOS or a debit card when shopping
instead of using your credit card.
See spending
for tips on how to keep track of where your money is going day to
day. If you have a smart phone, you may find it handy to download
our free TrackMySpend mobile app to keep an eye on your spending on
the go.
TrackMySpend
app
Make your savings work for you by putting your money into an
account where it will grow. Savings accounts are great because you
can earn compound interest on your savings.
If you're on a low income, you may qualify for one of the
savings programs offered by some charitable organisations. For
more information see other programs for
low income earners.
Saving for a long-term
goal
Smart tip
Be realistic with your timeframe so you don't make it too hard
on yourself to reach your target.
Long-term goals are plans you want to achieve in around 5 years
or more. This could include buying a home or paying off your
mortgage, paying for your children's education or saving for
retirement.
As for short-term goals, look for ways to cut back on your
spending in order to boost your savings.
For long-term goals think about investing some of your money. Get some financial
advice to work out a good investment strategy to reach your
goals.
Money for emergencies
Whatever your goals, it's a good idea to put some money
aside for emergencies. Keep this 'rainy day' fund separate to your
savings and everyday money. As a guide, aim to save up enough money
to cover your expenses for 1 to 3 months. Remember to keep this
money for real emergencies and top it up again after you use
it.
Saving is easier than you may think. The trick
is to start small and start now. Set your goals, create your
savings plan and begin to make your dreams a reality.
Related links
Last updated: 17 Feb 2014
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