Planning to go on a holiday or buy that brand-new flat-screen TV? Or maybe you want to make an upfront payment for a car leasing in Brisbane? Unfortunately, as you check your savings account, you may realise you haven’t really started saving as much money as you would like.
Saving money can be difficult. Some lack willpower and others seem to find that there is never enough money left at the end of each week to save. Everyone's financial situation is different. So to help you with your savings goals, here are a few tips to help you get your savings account on track.
Choose an online savings account with a high interest rate
An online savings account lets you easily deposit money without the hassle of waiting in line at the bank. In just a few clicks you’ll be able to send money to your savings account anytime you want. Plus, since it’s a high-interest account, it will be easier to motivate yourself because you’ll earn more as your nest egg grows.
Set up an automatic savings account
A foolproof way of making sure you set aside a specific amount of savings each month is to enrol in an automated deposit plan. Each month or week (depending on your preferred schedule), a certain amount is automatically transferred to your savings account. Because all transfers and deposits are done automatically, you won’t even have to think about it and your savings account will benefit from consistent deposits. After a few months, don’t be surprised if your savings account is looking a lot better.
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Set up a waiting rule to cut down impulse buying
If you have impulsive buying habits, you need to try and break them in order to increase your savings. A good tip is to set up a waiting rule before buying something that you probably don’t need. When you see a snazzy pair of jeans or an expensive piece of jewellery that matches your favourite top, wait for at least a day or two before buying it. This gives you time to think and realize that you don’t really need another piece of clothing or jewellery.
Create milestones or benchmarks
If you’re saving for something big, like a family holiday or an upfront payment for a car, it’s important to set up benchmarks or milestones to mark your progress. If you're saving for a car, it is a good idea to look for a near new car from a business that accepts a lower deposit and weekly repayments. This will make car payments more affordable and achievable, and make it easier for you to reach your milestones. Once your funds have reached a certain amount, say $2000.00 or more, you can give yourself a not-so-expensive treat, like eating out or watching a movie with family or friends. The bigger target you have, the more important it is to have milestones. The rewards you get for each milestone can help you stay motivated to keep saving until you’ve reached your target.
Saving money does require some self-control and discipline, especially if you have bad spending or shopping habits in the past. Fortunately, a few tips can help you convince yourself to put away that extra money instead of spending it on items you don’t really need. Take advantage of online and automated banking services. These features can help save time and effort and make the entire saving process more manageable. Cutting down impulse buying is easy when you make a proactive decision to stop. But don't forget to reward yourself whenever you reach your financial goals. With enough patience and self-discipline you’ll be able to save money for your dream holiday, that brand-new gadget, or an upfront payment for that near new car loan in no time.
Words by Katrina Daez