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Treating savings as an essential expense is important to securing your financial well-being. Setting savings goals can help make your money go a long way, whether you are saving for something or just want a cash reserve for emergencies.
Saving and setting goals
If you are on Centrelink payments or a low income, you might only be able to save a little – doing this every week makes a difference.
- use a jar or piggy bank and put coins in it when you get home every night – before you know it, the jar will be full, and you can take it to the bank to deposit
If you earn wages and can save more, consider:
- keeping savings separate from everyday money – deposit savings into a separate account and don’t link any cards
- automate savings by setting up a regular direct debit the day after you are paid, so the money is never in your account long enough to be spent – this may also mean you earn more interest if you have chosen an account that rewards you for not making withdrawals
Shop around for the best savings account. Mozo shows different types of bank accounts and what interest they are paying. Don’t be afraid to move savings from one bank to another if you can get a better deal. Check the terms and conditions for fees or minimum deposit amounts.
When saving money, it’s important to set goals and try to stick to them:
- Determine what the goal is and how much you need to save. Research and consider if the amount you need may be higher in the future than it is today. A budget will help you with this.
- Set a timeframe to achieve the goal, but be realistic. Consider the budget you’ve prepared – how much can you afford to save? Do you need to save more?
- Stick to the goal.
- Consider sticking your goal on the fridge or wall to keep it in mind. You may want to share the goal with someone who can keep you accountable.
For further information on savings, see MoneySmart.
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