Having a savings account is a great way to meet financial goals and achieve financial well-being. The sooner you start savings, the quicker you’ll reach your financial goals
Here are our 6 best tips to save smarter and reach those goals!
1. Establish your Goals
It is important to have something that you are aiming for. Finding the motivation to save will feel that little bit easier when you have a goal that you are striving towards. It’s a great idea to have a balance of short term and long term goals to keep you focused and motivated. A short term goal could be saving for a TV or a holiday. A long term savings goal could be for a house deposit.
2. Create a Budget
Having an overview of your income and expenses will help you determine how much money you can allocate to your savings. It will also help you keep track of any unnecessary spending so you can reduce some habits and put more funds into your savings.
3. Set Up Automatic Transfers
It makes it easy when you don’t have to think about transferring money into your savings accounts. If you don’t have to think about it, and the transfers are happening automatically, the savings will add up quickly! Whenever it’s pay-day, set up a transfer. Savings will soon become a habit and a normal part of your money management.
4. Reduce Impulse Spending
It can be easy to give into retailer savings, the latest gadget, and the fashion and make up trends on social media. But if you can resist temptation, and avoid impulse buying, you can put the cost of those products into your savings. If there is something you want, it can be a good idea to wait 30 days to see if you still want or need the product. You can also reward yourself with something small when you reach savings milestones. It’s good to have balance when saving!
5. Cancel Memberships and Subscriptions
Do you have subscriptions to several streaming platforms? Or a membership to the gym you don’t use? Cancel any subscriptions or memberships you don’t use often, or switch to a cheaper streaming service and only use one.
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6. Reduce Unhealthy Habits
Quit smoking, avoid regular takeaways, swap your morning takeout latte for bringing one from home. You can make a big difference to your spending habits by tightening up on habits that aren’t always healthy for you. If your daily coffee is $6, and you reduce this to a weekly treat, imagine the amount of money you will be saving!
7. Compare your Bills
You can make savings on your utilities bills by comparing. NZ Compare makes it easy to compare broadband, power, mobile, and other money and finance related bills such as your mortgage or insurances. You can find better deals for your household that reduce your expenses, and you can put that money towards your savings account.
Further Reading:
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