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How to make the most of your savings

Category Personal Finance Save

Although Australians enjoy the benefits of a stable economy, the current eurozone crisis has shaken up consumer confidence. The situation in Europe is shaping a cost-conscious climate in Australia along with a new awareness of the pitfalls of bad money management.

Despite this, the most recent RaboDirect National Savings Barometer found that 46 per cent of working Australians only had a month’s worth of savings in the bank a fact that highlights the gap between the desire to save and the ability to put good savings habits into practice. Here are five pointers to making your savings go the distance.

1.Put money aside regularly

Making sure you save money regularly is as easy as setting up a monthly payment into a high interest online saver account. Better still, direct all your income into this account and pay yourself a weekly salary to cover all your expenses. This small, strategic measure can have a hugely positive impact on your account balance. Improve your wealth through these saving tips

2.Save for a rainy day

As the Greece crisis has shown us, financial emergencies can hit hard and without warning. This is why it’s worth embracing the cliche of saving for a rainy day and funneling all your extra cash into an emergency savings account. Aiming to put aside three months income is a wise move.

3.Term deposits and bonds

Investing your money in a term deposit is a powerful way to leverage your existing savings and reap significant returns. RaboDirect’s term deposit option lets you earn returns of up to 5.6 per cent per annum.

4. Be thrifty

Saving money doesn’t have to mean forgoing your lifestyle. Shop around to find the most competitive rates for your phone provider, electricity and gas bill, and embrace coupons and group buying. Your savings will start mounting before you know it.

5.Use your imagination

Why not swap your expensive gym membership for a daily run, or spend a little extra time making your lunch instead of purchasing it each day? Unnecessary costs can quickly eat into your savings it’s better for your bank balance if you swap them for wallet-friendly options.

Making the most of your savings account can be simple, seamless and stress-free. All it takes is focus and determination and a little thinking outside the box.