Strategies to help your savings grow…

Separate your savings!

Many people try to save up money while keeping all of it in an extremely accessible account. The issue with this, is that most people don’t have great self-control, and you will end up spending more than you should. The key is to create a separate savings account that isn’t as accessible.

An easy way to grow your savings without having to think about it, is to set up an automatic transfer to your savings account every time you get paid.

Some accounts or apps allow you to round-up your spending, and transfer the change into your savings. For example, if you buy a meal for $12.50, you’d round it up to $15, sending the spare $2.50 into your savings.

 

Try to reduce your spending

Have a look over your transactions for the past month, and look for any unnecessary spendings, such as unused subscriptions or memberships. Additionally, see if you can swap any of these to cheaper options – maybe another gym nearby that costs less.

Search for ways to reduce your bills, and shop for items or clearance when possible.

 

Set a plan and a goal

Start by setting a goal to work towards. This should include a specific amount of money you want to have saved, in a set time period. Use this goal to plan how much you need to save each month, and figure out how much spending you can cut back on.

 

All information was sourced from moneysmart.gov.au