Eight Ways To Increase Your Savings
Many of us want to increase our savings. Be it for a holiday, a large purchase or just wanting to have some money sat aside for a rainy day. Below are 8 practical ways to help you increase your savings.
1. Review your expenses
Small amounts when incurred regularly can add up to large amounts over time - you could be spending hundreds of dollars on things without realising it! A great start to increasing your savings is to review where your current expenses are going. Try categorising all your bank transactions over the past month to see where your money has gone. You may be surprised by how much those small amounts add up to. Did you know that a $6 drink every day can add up to $2,190 per annum?
2. Review your debt and get it under control
It is usually best to have your debt under control or cleared completely before you start saving. Debt is costing you money every week in the form of interest. The quicker you pay off your debt, the less interest you will have to pay. By clearing your debt completely, you are removing a regular expense that now frees you up to allocate those funds elsewhere, like a savings account.
3. Separate your savings money from spending money
It can be pretty tempting to dip into your savings if you see the funds regularly. It is a good idea to separate your savings money from your spendings money. This can be achieved by setting up a new savings bank account with a separate banking institution to your regular spendings bank account. This makes this account more clearly designated for savings purposes and keeps it away from your regular spending accounts.
4. Automate your savings
Making an unconscious decision on spending money on certain items makes it harder to save funds. You can remove this temptation by automating the savings process. Select a figure that you can manage to save each pay period and set up an automatic transaction to move these funds into your allocated savings account straight away.
5. Separate your bills
Very much like separating your savings from your daily expenses, you can set up a bank account solely for your bills. This exercise works by adding up all your expected bills throughout the year. Once you have the annual total of your bills, you divide the annual amount by your pay frequency (e.g. Weekly / fortnightly). Every time you get paid you automatically move this amount into the bills account ready for when your bills arrive. This way you don’t get surprised by any bill that you haven’t budgeted / saved for.
6. Review your bills
While we are talking about bills, it is a good idea to review your bills. Collect everything that you pay for regularly, including subscription services and ask yourself:
Do I really need this service?
Can I save money by changing provider?
Can I negotiate a better rate with the provider?
Any savings achieved by the above review can be then allocated to your savings account.
7. Sell unused household items
Do you have unwanted or unused items that sit around your house and take up room? You can sell these items to get them out of your way and also increase your savings. Did you know that the average household has around $5,300 in unwanted or unused items? This is a great kick start to your savings account.
If you need help increasing your savings don’t hesitate to reach out to see how the team can help.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate considering your particular objectives, financial situation and needs.
Your Advisors are Hell Yes! Financial Advice Pty Ltd, ABN 25 618 086 605 | CAR 1254388
A Corporate Authorised Representative of Viridian Advisory Pty Ltd, ABN 34 605 438 042, Australian Financial Services Licence 476223
Vicki O’Connor AR 1000956, an Authorised Representative of Viridian Advisory.