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In our current struggling global economy, every penny counts. Families and individuals right across Australia are increasingly interested in discovering new ways to save money. Here are my five top ways to save money, which will go a long way in keeping you solvent while still allowing you to enjoy the good things in life.
#1 – Set Yourself a Personal Spending Budget and Goals
The number one way to save money is to have a good understanding of where your money is being spent and to set budgeting goals to meet every month. Many people overspend in certain areas at the beginning of every month and then find themselves short when it comes time to pay bills or other expenses toward the end of the month. They then find themselves overextended, paying for things on credit and living outside of their means. When you set yourself a personal spending budget and set savings goals, you gain a realistic awareness of the money flowing in and out of your bank account, which can help to curb spontaneous emotional purchases and ensure that you are able to fulfill all of your financial responsibilities every month.
#2 – Save Money Regularly
Individuals living outside of their means rarely set aside money in savings for emergencies or large purchases, which can leave them in the lurch when large sums of money are required with little advance notice. A savings goal can help you to live within your means, while still acquiring large sums of money over time that can allow you to enjoy the large luxury purchases that can elevate your standard of living. Setting aside even a small sum every month is better than saving nothing at all. You may be wise to schedule a direct debit to your savings account every month, to ensure that saving is a kept a top priority in your budget.
#3 – Choose a Bank Account that Rewards Savings with High Interest and Low/Zero Bank Fees
Many accounts exist that will pay top dollar for the privilege of your holding your savings. Search out banks that offer a high interest introductory offer, which includes low or non-existent monthly bank fees. You can automatically transfer money from your checking account into saving every month and enjoy watching as your savings steadily increases through interest payments over the months and years.
#4 – Pay Off Higher Interest Debts First
The higher the rate is on your credit card, the more you pay every month in interest on your principle amount borrowed. It stands to reason, therefore, to pay off your highest interest rate debts first. This will allow you to minimize the interest payments you will make on your debt and save money with which to pay off your lower interest cards.
#5 – Save Securely
Deposits of up to A$1 million at all eligible Australian Authorised Deposit-taking Institutions (ADIs) are guaranteed by the Government at no cost. This means that even during tumultuous global economic times, your money will be safe against market fluctuation or the closing of a major financial institution.
What are your top money tips? Leave a comment with your top money saving tip below.