As per recent statistics, Australians have improved their saving habits, managing to save about 10% of their disposable income. Nevertheless, a 2012 study by RaboDirect National Savings Barometer reports that almost fifty percent of the working population in Australia could only sustain their expenditures for a month with their savings. This points towards the need for enhanced saving practices.
Setting a budget, regular saving, and preparing for unexpected expenses are regularly advised strategies, but there are other inventive ways to save too.
Transform Your Spending Habits
Impulsive buying can bleed your finances dry. A recent RaboDirect survey revealed that almost one-third of the respondents made impulse purchases of more than $500 in the past six months, primarily on clothing and shoes.
Using cash only for shopping might prevent reckless buying, however, for those reliant on their credit cards, there are means to save money as well. Ratecity.com.au suggests that by changing to a low-rate balance transfer card instead of repaying a higher credit card rate can save hundreds of dollars.
Invest for Kids
By investing as little as a dollar a day, you can ensure a secure financial future for your children. Ashley Ormond suggests that with regular investments, investment in growth assets, reinvesting all profits, and not withdrawing the money, it’s possible to accumulate $1 million over a 50-year span; though this requires discipline.
Conserve Energy
Rising electricity costs have impacted household budgets significantly. However, options to reduce power bills still exist. Websites such as Make it Cheaper, GoSwitch, and Switchwise offer a platform to compare prices and shift to more affordable providers. One can adopt measures like regulating the hot water thermostat, switching to solar or natural gas for heating water, installing insulation, and washing clothes with cold water.
First Home Buyers
For individuals or parents saving for a first home, the lesser-known first home saver account offers an impressive 17% interest rate, guaranteed by the government. Savings of $6,000 results in a $1,020 contribution from the government, making it a valuable benefit especially for those under 60 years of age. Using mortgage offset accounts when taking a mortgage can help decrease loan principal faster.
Innovative Saving Tips:
You can also save money by learning DIY skills like car maintenance, growing plants, baking gifts, or barter services. Other strategies include carpooling or using public transportation, negotiating a cash discount, or price comparison online. Automated savings, like automatic deductions from wages into a savings account like RaboDirect’s Notice Saver account, can also ensure disciplined saving.
Adopting innovative saving methods may seem challenging initially, but it can eventually free up funds for more worthwhile investments.
