By Qantas Credit Union
Developing good savings habits can help you achieve your goals in life, whether it’s putting money aside for an emergency or saving for a new home, car or holiday abroad. Saving your money might not be as fun as spending it but it’s an important part of securing your financial future and it can be an exciting time when you achieve your end goal.
Whatever your dreams or aspirations, it’s important to put in place positive savings habits early on and then watch how quickly and easily your finances grow. Here are five simple tips to help you boost your savings and become a better, more disciplined saver.
Set a goal by asking yourself what you want to save for. Is it to own your own home or to get out of debt? Once you know what your goal is, you will have a firm reason to save. And then get serious about saving, keeping that goal in mind and revisiting it to keep you inspired.
Without a timeframe, you won’t have the motivation to knuckle down and save hard. Set a date by which you want to achieve your savings goal and put it somewhere obvious where you can regularly see it. Look at this date often and it will serve as a reminder for why you are saving money and when you plan to achieve your goals by.
Take better control of your finances by tracking where your money goes. Create a simple spreadsheet and list all of your expenses, such as bills, loans, shopping and eating out, then compare this to your income. Based on your savings goals, adjust the outgoings to enable you to put away more and quickly reach those goals. Even better, use our straightforward budget planner, input all of your in-comings and outgoings, then let the planner do the work for you and calculate just how much you can save.
Make sure the first person you pay each month is yourself. Either set up an automatic transfer from your regular account to your savings account or create a routine where you do it manually. Whatever you choose, ensure that you allocate your savings before your money is spent elsewhere. And if there is anything left over at the end of the month, then save that too.
Review your savings on a regular basis to make sure they’re on track. As well as reviewing savings habits, constantly review your spending patterns. Are you relying too heavily on credit cards and are you using them wisely? Are you keeping within budget and, if not, where are the weak areas to focus on? Regular spot-checks will go a long way to improving your financial understanding and allow you to adjust your spending sooner rather than later.
It is never too late to start saving for, and reaching, your short or longer term goals. It’s actually easier than you think and you’ll be pleasantly surprised at how much you can achieve. Simply put in place good savings habits to create a firm savings foundation, then sit back and watch as the money pot grows!
The information in this article is of a general nature and does not constitute as advice in relation to any investment of purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any decision you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice. You should also read the Product Disclosure Statement (PDS) available on our website before applying for financial products and services. Normal lending criteria apply to credit card applications. Terms and conditions apply and are available on request. Qantas Staff Credit Union Limited trading as Qantas Credit Union ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.