28 April 2021
Do you want to start saving but aren’t sure where to begin?
Here are a few tips to help you get the ball rolling and start saving money. Saving even just a few dollars here and there can really make a difference over time.
Set a goal
Saving for something specific, like a new fishing rod or a holiday, can help give you motivation to save. Setting a small goal to start with is more manageable particularly if saving is not something you’ve focused on before. It will be more achievable to save your first $100 or $1,000 towards something than the whole amount. You can then set a new goal once you’ve celebrated reaching your first.
Know how much money you have coming in
Work out how much money you have coming in so you know what you have available to spend and save. Include your pay as well as any government benefits you may be receiving and check your bank statement and payslips to make sure you’ve included everything.
See where your money is going
Knowing where you spend your money can help you find opportunities to save.
Take note of everything you spend for a week or two by keeping receipts, checking your bank statements or using an app to record what you spend. Once you’ve done this look at the expenses you need to live, e.g. rent or groceries vs the things you could live without, such as a takeaway coffee. Trying to cut back on some of the things you can live without will help you save money.
Review your debt
Paying off your debts sooner can help you save thousands as you will pay less in interest.
Look at all your debts including credit cards and loans and list what you owe, the minimum repayments and the interest rate. By listing your debts you can see which ones are a priority (those that keep the roof over your head) and which have the highest interest rate – these are the ones you should pay off first if you have money available for extra repayments.
Create a simple budget
Once you know how much money you have coming in and where you are spending it, you have what you need to put together a simple plan for your money – a budget.
If you’re paid weekly, it’s a good idea to do a weekly budget listing what you earn and what you need to spend. By doing this you will see what money you have available to save.
Shop around for a deal
You might look for the best price when buying a big ticket item but always looking for the best price, even for small items, can save you money. For example, getting a beer during happy hour can save you a few dollars.
You can also save by shopping around for the best deal on regular expenses such as your electricity, phone or insurance, and switching to a credit card with less fees and a lower interest rate could also help you save money.
Make a plan to save
Plan how much you would like to save each week or month and if you’re able to automate your saving by putting money away directly from your pay or everyday account.
Setting up separate bank account with a high interest rate for your savings will see them grow. An account with no eftpos or debit card will also help as your savings won’t be so easy for you to access.
Find out more
You can find more information on saving money and budgeting on the Government’s MoneySmart website.
Information and budgeting tips in this article sourced from moneysmart.gov.au. This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Before acting consider the appropriateness of the information to your needs or seek independent advice from a properly qualified professional. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).