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.
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