Monday moneyvator: Create a savings plan and stick to it!

Monday moneyvator: Create a savings plan and stick to it!

There’s something you probably have in common with the stranger sitting next to you on the bus, the barista who makes your morning coffee and your neighbour who constantly forgets garbage night – you’re all saving for something.

Personally my savings goal is a home deposit but there are plenty of other reasons everyday Aussies like you’re saving, which include:

Whatever you’re saving for, ensuring savings success all comes down to one little word “planning”. Yes, I know creating a savings plan is not as fun as all that splurging you did over the weekend but the term “Monday Motivation” was coined for a reason.

It’s the day you start afresh and get back on track with your goals, which in this case is your savings goal. The best part about this moneyvator is you can complete it in your lunch break by following these 5 simple steps.

Step 1: Look at where your money is going

Do you come to the end of your pay cycle wondering where all your cash went? I know I do! That’s why punching in all your outgoing and incoming expenses into a budget calculator is a must. You’ll get a clear idea of what your unavoidable expenses are (e.g rent, utility bills) and the areas you can cut back (e.g that bottle of moet, those Tony Bianco pumps).

Step 2: Decide on an amount you will save each month

After you’ve looked at your budget, it’s time to pick a savings amount you will put away each month. Choose a reasonable figure that will still allow you to splurge every now and again, because no one wants to be living off cans of tuna for months on end!

Step 3: See how long it will take you to reach your savings goal

If you are like me and are saving up a significant amount then it will obviously take some time to reach that goal – but just how long? That’s where a savings goal calculator comes in. Punch in the amount you can afford to save each month and it will show you how long it will take to get there.

For instance, say you could afford to save $800 a month and have a savings goal of around $9,500, assuming you had a starting balance of $0, it would take you 1 year to reach that goal.

Step 4: Open a high interest savings account

One way to plump up your savings is by opening a savings account that comes with a high interest rate attached. Let’s stick to the above scenario of a savings goal of $9,500, by opening the ME Online Savings Account with a rate of 3.60% (conditions apply), that would be an extra $160 in your pocket.

Step 5: Stick to it!

While this might be the last step on the savings plan list, it’s probably the most important – stay diligent and ensure you stick to the amount you’ve planned to save each month. If you think you might be tempted to splash out, consider setting up an automatic payment into the savings account from your everyday bank account, so the money is out of sight, out of mind.  

What are you saving for in 2016?

Monday moneyvator: Create a savings plan and stick to it! was last modified: April 18, 2016 by Rebeccah Elley

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