Saving
Reach your savings goals
Setting a savings goal for yourself is exciting. Your goal could
be to put some money aside for emergencies or you may want to save
for a home deposit, car, holiday or a wedding.
Whatever your goal, once you start a regular savings plan you
may surprise yourself with how much you can achieve once you put
your mind to it.
How to achieve your savings
goals
When you set a savings goal it's important to get a savings plan
together so you can make your dream a reality. After all, a goal
without a plan is just a wish.
Smart tip
If you have borrowed money at a high interest rate, make paying
off that debt your priority before putting your money into
savings.
Here are some techniques used by confident savers:
- Set a specific savings target to work towards
- Have a clear savings plan
- Regularly review your progress
- Set a specific time frame to achieve your goal
- Tell your family and friends about your goal.
People who review, remind themselves and publicly commit to
their savings goals are more likely to achieve them.
How Australians save money
Have you ever wondered what it takes to be a successful
saver?
Our saving
infographic shows what Australians' savings goals
are, the top reasons people break financial resolutions, and the
techniques people use to reach their savings goals.
Know how much money you need
The first step to achieving your savings goal is to work out how
much money you need to save and how long it will take you to save
that amount.
Work out how long it will take to meet your savings targets.
Savings goals calculator
If you prefer to write down your savings goals, use this savings plan.
Make some cut backs
To achieve your savings goal, you may have to cut back on
optional expenses like entertainment, dining out and shopping.
Record your everyday expenses, so you have a clear picture of
what you are spending your money on, and where you can make some
changes.
Track your personal expenses on the go with our free and
easy-to-use app.
TrackMySpend
You can also use our budget planner to see how much money is
coming in and going out each week, fortnight or month.
Stay in control of your money and plan for your future.
Budget planner
Visit our webpage for ideas on simple ways to save money.
For tips on how to save for a specific goal, 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.
Cut back on expenses
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.
Look for spending leaks
Spending leaks are those small regular purchases, like a morning
cup of coffee, that add up over a period of time. If you're trying
to save some extra cash, think about your spending leaks. Just one
$3.50 cup of coffee every morning will cost you $840 over a
year.
Because spending leaks are often the fun things like drinks or
entertainment, don't cut them out completely. Instead, choose just
one or two things to cut back on.
Cash in your spare change
Instead of putting your spare change into a vending machine or
using it to buy snacks or takeaways, why not collect it at the end
of every week and put it into an old jar or empty ice cream
container? When it's full, take it to your bank and deposit it into
your savings account. It's a quick and easy way to boost your
savings.
Set up a savings account
Think about opening an online savings account. They offer a high interest rate which compounds, so you can
earn interest on the interest and your savings keep growing. Find
out more about compound interest.
It's also harder to access money in these accounts than other transaction
accounts, so you won't be tempted to use the money for other
things.
Some banks now offer an option to round up purchases you make
using a contactless card and transfer this amount to
your savings account. You can set the round up amount to the
nearest $1 or $5. For example, if you set your round up amount to
the nearest dollar and you buy a coffee for $4.50, your account
will be debited with $5 and the 50c change will be added to your
savings account.
Automate your savings
If you're working, consider transferring part of your pay
directly into this savings account. You can ask your employer to do
this for you, or you can set up a transfer yourself. Automating
your savings allows you to 'set and forget', so your savings will
automatically grow each time you get paid!
Saving for a long-term
goal
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.
Think about investing some of your money. Get some financial
advice to work out a good investment strategy to reach your
goals.
Video: What financial tip would you give your 20-year-old
self?
Video about saving and investing
Financial literacy experts give their tips around saving,
investing and the importance of budgeting.
Saving 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 1-3 months. Remember to keep this money
for real emergencies and top it up again after you use it. See our
webpage on building an emergency fund
for tips on how to create a savings buffer.
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: 16 Nov 2018
