Saving money is crucial, but that doesn’t mean it’s always going to be easy. If you want to enjoy the occasional holiday, upgrade your car or have a comfortable retirement, you’d better make sure your savings account is in good health.
New research from the Australian Securities and Investments Commission (ASIC) shows successful savers employ particular techniques to help reach their savings goals.
So just what can you learn from the best savers?
Tip 1: Understand
Firstly, you’ll need to know exactly what you’re saving for and how much money you’ll need.
According to the ASIC’s online poll, 78 percent of those who feel confident about reaching savings targets understand how much money they need.
Whether you’re saving for a holiday or a deposit for a home loan, it’s important to understand just how much you need, whether the amount is big or small.
Tip 2: Plan
Once you’ve got your savings goals together, you’ll need to implement a plan.
With three-quarters of confident savers putting a clear savings plan in place, it’s easy to see why this might be a smart idea.
Tip 3: Review
Almost three in four confident savers regularly review progress towards their goal, according to ASIC.
Even if you set up an automatic payment to put money into a designated savings account, make sure you consistently check up on how your savings habit is tracking.
Tip 4: Time
Are you saving for a special overseas trip or a wedding? It can be easy to push out dates if your savings aren’t quite hitting the targets.
According to the ASIC, 72 percent of confident savers set a specific saving timeframe.
Make sure you do the same – you may find the deadline is incredibly motivating!
Tip 5: Share
Finally, be sure to share your goals with family and friends – a habit of 43 percent of confident savers.
This doesn’t mean you have to broadcast your bank account details to your Facebook friends, but telling your close relatives or good friend that you’ve got your eye set on homeownership, a round-the-world trip or new vehicle can help you stay up to date with your saving.
Source: Rate City