Quick saving tips to help your money grow

Over on our Facebook page, the Australia Wealth team runs a ‘Money Monday’ series, giving quick tips on how to not only save money but also be smarter with it to help set your financial future up successfully.

If you haven’t caught up with our #moneymonday series, here are our hot takes on what you can do to get smarter with your money.

Use the 24-hour rule

Use the 24-hour rule to help avoid purchasing expensive or unnecessary items on impulse. Think over each nonessential purchase for at least 24 hours especially when shopping online, as it’s easy to impulse buy.

Start small and think big

When it comes to saving, most people save more successfully when they set a short-term goal. For example, committing to saving $20 a week for 6 months is much more achievable than setting a goal to save $500 a month for a year. Try it and see how much you can save.

Plan for retirement now

Saving for retirement isn’t on the minds of most young people, but saving for retirement through various methods like super, investing, and assets like real estate early are essential to building your wealth and helping you set up financially for your later years.

Pay off high-cost debt

If you’re borrowing money with double-digit interest rates, the best investment you can make is to pay it off quickly. If you only pay back the minimum balance, you’ll be stuck paying high-interest charges and it will take years to pay off the debt.

Related: 3 ways to revolutionise your financial health

Save automatically

Grow your savings the easy way by setting up a monthly transfer from your spending account to savings, right after you get paid. What you don’t see, you won’t miss or be able to spend.

Grow your emergency fund

Having and maintaining an emergency savings account may be the most important difference between those who manage to stay afloat and those who sink in debt when an unexpected circumstance arises. Start with small scheduled transfers to a separate account that builds up over time.

Match your spending

Use your spending as an opportunity to save by matching the cost of your nonessential purchases with your savings. Buying a new work outfit? Just put the same amount into your savings account to help grow your savings fund.

Negotiate better rates

Don’t overlook the power of negotiation when it comes to your monthly utility bills. Not all services have costs that are set in stone and have rates that are negotiable. Don’t be afraid to ask for those hidden discounts and or hard-to-find advertised promo rates, which can save you a tone of $$ each month.

Related: How to pay off your home loan sooner

Spend less on “stuff”

It really is that simple to save money by spending less money on “stuff”. To help you kick-start the habit of not spending on useless goods and clothing, try unsubscribing from tempting emails, reduce the amount of time you spend window shopping online when you’re bored, and unfollow brands on your socials that just sell products.

Make the most of your free time

With us spending more time at home, now is the perfect time to take stock of your current financial situation.

• Review what’s working and what’s not.
• Take stock of where your spending is going.
• Review your super and investment funds.
• Cancel what you’re not using like monthly subscriptions.
• Make a plan for how to be prepared for any future emergencies.

Cut non-essential costs

If your income has been effected now is the time to cut back on the luxury items in your expenses. Specifically tv/music streaming services, any magazine/gaming subscriptions and other random costs to help prioritise your essential costs.

Related: How to keep your finances in check during a pandemic

Work on paying off your debt

High-interest debt, like credit cards, is a quick way to eat up your monthly income. So paying off your credit cards as quickly as possible will free up additional money in your budget, making you more financially comfortable and build your savings sooner.

Check your loans are still competitive

With the official cash rate from the RBA as low as ever at 0.25% in a bid to help stimulate the economy, now is the perfect time to look at your current interest rate on your home loan. Make sure you compare your current rate to what’s been currently offered by banks and lenders to make sure it’s competitive. 

Now that you’re all caught up on our Money Monday series, be sure to join us over at our Facebook Page and follow the series. We’re also happy to answer any questions to help you grow your financial future.