How good are you at saving?

Handful of CoinsDo you tend to find that no matter how much you’re earning, you’re spending just as much?  Saving money seems to be something most of us want to do, but few of us do well.   Whether we earn $30k or $130k, it appears to be almost human nature to find more and more things to spend our money on until there’s only a few dollars left as we stagger towards our next pay day.

Having spoken with many Bacchus Marsh residents and families madly trying to save up for their first home deposit or rental bond, we thought we’d share a few tips to help get your bank account back into the black.

  • Set yourself goals.  What do you want?  Whether it’s a new home, a holiday, car, new outfit or school fees, start making your list.
  • Now set some targets.  Next to each item on your list assign dates and costs.  Try to be as accurate and realistic as possible – these should be achievable.
  • Calculate how much you’ll need to save.  Once you’ve calculated how much you’ll need for each item on your list of goals, and the timeframe you have to work in, you’ll be able to easily establish just how much you’ll need to save each week to achieve your goal.
  • Match your calculations against your budget.  This requires you to be thorough.  List all of your outgoing costs, leaving nothing off your list.  What are your typical monthly utility bills?  How much does petrol cost you each week?  What about car repayments, school fees, insurance and groceries?  Your goals need to be realistic, and this list will let you know if you can afford that holiday while still affording your monthly essentials.
  • Set up a savings account.  There are various savings accounts available, and our advice is to shop around.  Generally the higher returns come from accounts with the most stringent restrictions, so work out your flexibility and start putting your money away in a place that will earn interest.

Once your balance reaches your target it’s time to reap the rewards!  Whether it’s buying your first home, moving out of mum and dad’s into your first Bacchus Marsh rental house, or taking a great trip away, enjoy the freedom your savings has afforded you.