How to reach your savings goals

Learning how to save is a skill for life which helps create everyday stability and safeguard your financial future.

Whether your savings goals are modest or you’re reaching for the stars, you can make the most of what you have in the timeframe you choose.

Set a timeline

Setting a time frame is part of reaching any goal, whether it’s financial, fitness or health related. An end goal and date means you can set incremental milestones to regularly review – monthly, quarterly, or even yearly for long term savings like superannuation.

Some people need the pressure of a deadline to make an action, or like the structure a deadline gives. Other people simply want to go on a holiday in 6 months and structure their savings plan to meet that goal.

Start with a budget

Budgets aren’t all about sacrifice and boring spreadsheets. Use our tools to get your money organised:

  • use a budget tool to crunch the numbers and figure out how much you can dedicate to a savings plan. This is great for beginner savers, or for a more open-ended savings goal such as an emergency fund
  • use a savings calculator to work backwards from your goal and confirm how much you need to put aside and for how long to get there. If putting that amount aside doesn’t fit your current budget you’ll need to scale the amount down, increase the time frame, or take another look at your budget and cut costs.

Take the opportunity to look at your budget with fresh eyes and think about any outgoings that are draining your savings potential. Savings can get addictive… so the more you save, the more chances you’ll find to streamline spending.

Tip: Don’t take all the fun out of life with a budget, allow some space for fun and you’re more likely to stay on track.

Short term versus long term

Short term savings of around three years or less, has a finite goal at the end like travel plans, a car or an emergency fund.

Long term savings includes things like saving for a house deposit, an education fund for your children or your retirement.

Whatever your goal, a high-interest savings account will get you closer to your goal.

Tip: Look for an account with no or low fees, competitive interest rates and easy access to your money. Our Everyday Plus Account has no monthly account keeping fees when you deposit at least $1500 a month and makes monthly donations to community charities.

Don’t hesitate, automate

It doesn’t matter whether you’re a veteran saver who gets a kick out of squirrelling money away, or a beginner saver who spends everything you earn and more – you’ll benefit from automating your saving process.

Once you’ve decided on your budget, your goal, how much you need to put aside and how often, set up an automatic transfer into your savings account and then stop thinking about it. Having to manually transfer money across each pay period takes up brain space and makes your savings program a decision to make and remake every week or fortnight.

Tip: If you’re looking to tighten your belt and reduce your spending, here’s three quick things to check – are you paying account or transaction fees you don’t have to, for software or app subscriptions you don’t use or (let’s be honest) is there a direct debit coming out each month from a gym you rarely go to?

Good habits set you up for life

We’ll help you get smart about saving. Talk to QBANK or call 13 77 28.

Posted in

Budgeting

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