Category: Money Matters
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Sub category: Saving
26 August 2015

How to boost your savings when you have little spare cash

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. Do this by setting up a direct transfer from your everyday account to a separate savings account. 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

Taking on a second job or earning additional income can provide money for savings but another option to kick start your savings is to turn unwanted belongings into cash.  It’s estimated the average Australian has around $6,000 in unwanted items sitting around the home[1], and 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.

[1]Source: Gumtree 6 Jan 2015 http://blog.gumtree.com.au/dont-hoarder-turn-unwanted-goods-cash-gumtree/

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Home and Contents Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

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