Category: Money Matters
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Sub category: Saving
18 December 2017

The Long Haul – Mastering Long Term Savings

Okay, we’re going to tell you this just once. This isn’t the glamorous savings blog about saving for next month’s dream holiday or gift for a friend. This is about achieving those goals that are much further down the road.

Long-term savings goals include things like a house, your children’s education, or a nest egg outside of your super fund for when you retire. If you’re looking into any of these, or any goal more than five years down the road, you’ll need to flex those long term savings skills.

 

At a glance, the keys to long term saving are:
  • Finding the right savings account
  • Creating a savings buffer
  • Master your day-to-day savings

 

Have you got the right savings account?

Firstly, check to see if your savings account is providing enough growth to help you save long-term. Things like fees, penalties, low interest rates and welcome teaser rates can all hamper your savings goals over the long-term.

Look into your savings account and see if it’s giving you the best possible ongoing rates. If not, it might be time for a change.

 

Creating a savings buffer

When thinking long-term it’s crucial to account for unforeseen circumstances. By having a separate account as a savings buffer that you don’t dip into, you’ll have more confidence in your savings knowing that there is a safety net there just in case.

The key is to make regular contributions into your buffer account – no matter how small they are. As long as you contribute regularly, whether that’s weekly or monthly, you’ll start to build up your buffer and give yourself some breathing space. If you set up an automatic transfer to this account for every time you get paid, you can let the savings accumulate without any input.

 

Keep up your day-to-day saving

According to ING’s Everyday Round Up research, losing track of loose change is costing Australians $466 million per year. Day to day savings can go a long way towards your savings goals.

Try some of our tips for saving everyday, like:

  • Evaluate your regular subscriptions and cut out what you don’t need
  • Prep your meals in advance so you’re less inclined to buy lunch out
  • Carpool to work where possible
  • Buy a coffee machine and make coffee at home

If you keep these up they’ll add up over time.

 

If you want to make your savings go further, it might be worth finding an account that helps your money grow faster and smarter. Sign up for ING’s Savings Maximiser today to see how you can take your money further.

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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