Saving Money Made Easy
You want to save money right? You want to have your money work for you and to also grow as rapidly as possible in the time frame you want.
You are like many other Australian’s out there and would greatly benefit from becoming a bit more responsible with how you save money, so read on and look around this website.
Easiest Way to Save Money
You can open a high interest savings account, make regular deposits and watch your lump sum grow. This method tends to require a fair bit of discipline in terms of not withdrawing your money but ultimately lets you earn money on your money!
Best Ways to Save Money
I found a method that worked greatly for me was using a term deposit. Term deposits allow you to deposit money into a set interest rate bank account and not withdraw from it for a set period of time – all while you continue to add more money each month.
Remember to make sure your term deposit allows for extra money to be added, as not all allow this.
Another method is by setting a set percentage of each pay cheque to go directly to your nominated high interest account, that way you never see the money and do not feel you are missing out on it.
Saving Money for Short Term Goals
We all have short term goals such as buying those new jeans, that expensive camera you really want or purchasing a quick holiday away at Christmas – so it is wise to think about these goals and factor them into your savings plan.
If you need to buy the expensive camera, set yourself a goal to put away $50 a week for three months so that you can go out and buy it. Having a small goal in sight greatly helps you learn to manage your money and will give you a sense of accomplishment.
Saving Money for Long Term Goals
Long term goals might be buying a house, buying a car, buying an investment such as shares or managed funds – it may also be just saving enough money for retirement.
It is always a good idea to save a certain portion of your income that you make. A good rule of thumb is to save 10-15% of your gross income for your savings goals, while ensuring your superannuation contributions are always higher then the normal 9%. I previously suggested saving half of your age as a percentage of super, eg; a 40 year old should be saving 20% towards superannuation, this will greatly enhance your super account come retirement.
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