If your savings are creeping along at the speed of a glacier, it could be time to re-boot your savings habits. We spoke to five staunch savers, who share their secrets of success.
Somedays it can seem like you’re making no progress with savings at all. If your savings plan has lost its mojo, check out our tips from five successful savers to re-energise your savings.
Chris commits to saving regularly
Super-saver Chris recommends setting up a separate savings account, then committing to a regular payment into this account – either weekly or monthly. Chris suggests making it easy by setting up a direct debit.
Chris’ tip: “You’ll be surprised at the way little amounts each week or month build up. Before you know it, you have a deposit for something big, or a sizeable amount for that ‘rainy day’ event.”
Nina splits her pay 60-20-20
There’s a whole variety of ways you can split your pay across different needs. Successful saver Nina follows the 60-20-20 method, which helps to manage the challenge of being paid monthly.
Nina dedicates 60% of her pay to regular spending; 20% is deposited in short term savings to pay for things like a new phone or a vacation; and the remaining 20% goes to a long term savings account.
Nina’s tip: “I’ve been following this method for the past eight months and it’s really helped a lot in getting a grip on my finances and build up my savings.”
Kara has a guilt-free daily spending limit
Committed saver Kara allows herself $20 in cash every day, which she uses to “pay for anything I want guilt-free”. If she has any change left over at the end of each day, it goes to Kara’s change jar. She explains, “It stays there untouched until the end of the month when I take it to my bank and pay it straight into my savings.”
Kara’s tip: “If I ever get a $5 note I put it in a different compartment of my wallet and that goes straight in my change jar. I’ve heard other people do this with gold coins.”
Nicky imposes a 30-minute wait on impulse buys
Impulse buys can sometimes bust a big hole in your savings plan. Nicky has found a solution. “I follow a 30-minute rule to limit impulse buys. If I see something I love, but don’t really need, I walk away to give myself a 30-minute breathing space. Nine times out of ten, when I take a second look I’m a bit ‘meh’ about the whole thing and don’t bother buying it. It’s a simple way to avoid impulse buys.”
Nicky’s tip: “Everything comes on sale at some stage. Wait until the price is reduced – why pay full price?”
Sal re-aligns his budget…regularly
Big news – Sal is getting married! And that’s making him even more aware of where his money is going. Sal uses a spreadsheet for his budget. He explains, “Every time I buy something, I write it in my notes. Then every Monday morning I input it into my spreadsheet, which is broken into categories. By the end of the month I have a good idea of where my money is going.”
With an upcoming wedding to pay for, Sal has added a new expense category to his budget – wedding costs.
Sal’s tip: “Review your budget monthly and change it according to how your lifestyle changes.”
If you’re not sure if you have the savings required for a home deposit, speaking to your Aussie Broker can give you an idea of how close you are to your home-buying goal.