When money is tight it can often seem impossible to make headway with savings. Although you may feel like there are no corners left to cut to free up spare cash, there may still be a few strategies you can use to help grow your savings…
1. Know exactly where your money is going
It can be easy to underestimate how much we’re spending on a daily basis if we don’t keep track. Keeping a spending diary for a week or two could help paint a clear picture of where your cash is going. This can also highlight where you could save on nice-but-not-necessary purchases that may be draining your bank balance.
2. Plug financial leaks
You might look for value for money in the department store or supermarket, but make sure you’re applying the same eye for value to your financial products. Set aside ten minutes to review your everyday account and home loan, using a comparison site such as mozo.com.au. In particular, if you are still paying monthly account-keeping fees on your transaction account, consider switching to get a better deal and pocket instant savings.
3. Give savings top billing
One of the most effective ways to grow savings is to lock your cash away before you spend it. You could do this by setting up a direct transfer from your everyday account to a separate savings account like ING’s Savings Maximiser. Time the payments to coincide with pay days, and make a commitment to avoid dipping into your savings unless absolutely necessary. It doesn’t matter how little you transfer to your savings account. The main point is that you’ll be developing a savings habit, helping you build a pool of funds towards your savings goal, or to access in an emergency.
4. Only buy what you can afford to pay for with cash
When cash is tight it can be tempting to turn to credit cards for regular purchases. But if you don’t pay the card balance off in full each month, it could mean you’re paying interest on purchases – further straining your ability to save. Sticking to cash or your debit card for everyday purchases makes it a lot easier to stay out of trouble with high interest debt.
5. Turn trash into cash
Kick start your savings and turn unwanted belongings into cash. If you can raise just a couple of hundred dollars through a garage sale or online selling site, you’ll have a tidy nest egg to get the savings ball rolling.
ING does not endorse and is not affiliated with third parties mentioned in this article. ING is not responsible for any services provided by third parties nor does ING accept any liability or responsibility arising in any way from any products or services supplied by the third parties.
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