The dawn of a New Year brings with it the opportunity to start something new, and if you have decided that this is the year that you get your savings in order then you’re in luck! Here are our 10 top tips to help you hit your savings goals.
1. Set a target to save towards
Saving is often most effective when you have a specific goal to aim for - it helps keep you focused and it means that you can put a plan in place to get there.
Your goal could be to build up an emergency cash fund, save a deposit for a house, or to get ahead and pay for next year’s Christmas presents. Whatever the goal is, having a target amount in mind and a timescale to get there will help you plan how much you need to save each month.
2. Start a savings account
Having a separate account like the Qudos Bank Bonus Saver Account can help you in several ways to reach your savings goal.
By moving your savings out of your main transaction account, you won’t be tempted to spend what you should be saving.
Additionally, it makes it easy to see exactly how much you are saving, so you know whether you are on track to hit your goal.
3. Calculate purchases by hours worked
A huge part of effective saving is thinking like a saver.
A good way to start doing this is by considering how many hours you will have to work to pay for an item you are considering. For example, if you are considering a pair of $200 Bluetooth headphones and you currently make $25 an hour after tax, think about whether the headphones are worth working eight hours for.
There’s no right or wrong answer to this, but it can be a useful tool to help make smart spending decisions.
4. Consider unsubscribing from promotional emails
It sounds obvious, but one of the best ways to save is to not spend money.
And one of the best ways to avoid spending money? Avoiding temptation.
Unsubscribing from promotional emails from retailers may mean that you won’t be tempted to spend money you don’t necessarily need to.
5. Consider saving your coins
Consider starting a designated place at home to leave any loose change you get and watch it grow. Even a small amount each day will grow over time into a sizeable sum if you are committed to being coin-free!
Once you have a sizeable amount, consider taking it to your local Qudos Bank branch and depositing it into your savings account.
6. Consider taking your lunch to work
This is a common one, but for a good reason - it works! If buying lunch at work costs $10 and bringing lunch in costs $5, then over the course of a working year you could save a $1,000 emergency fund, even allowing for a few Friday lunches out with your colleagues.
7. Double recipe quantities
You might want to make sure you always have a lunch ready to go by doubling the ingredients quantities of the meals you make. If it’s freezer-friendly, you can save it for a later date, or if it needs to be eaten fresh then you can take it to work the next day. You’ll get two meals out of one cooking session, use the ingredients more efficiently and save time too.
8. Plan your meals in advance and stick to a list while grocery shopping
Another great way to avoid temptation and ensure that you’re efficient with your meal preparation is to go grocery shopping with a list and only buy what’s on your list.
9. Treat yourself, but save at the same time
To make sure that you’re still moving in the right direction to your savings goal, consider matching the cost of your non-essential indulgences with the same amount in savings. For example, if you splash on a smoothie while you’re out and about, transfer the same amount into your savings account.
10. Keep track of your progress
Lastly, to keep yourself focused and motivated, make sure you know how you are tracking towards your savings goal with at least a monthly check-in on your progress.
If you’re using the Qudos Bank Bonus Saver Account*, you’ll have an easy way to track how you are progressing so you know whether you are on target to hit your goal.
So what are you waiting for? Go forth and save!
Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557 AFSL/Australian Credit Licence 238 305. The information in this article is of a general nature and has been prepared without considering your objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances.
Published Janurary 2020