Best savings strategies revealed
The New Year is upon us, so there’s no better time to shift your savings up a gear by making one simple change. Whether it’s giving up a vice like takeaway coffee or taking on the $10 note challenge, there’s sure to be a savings strategy out there that’s right for you.
To help you decide which will be your best recipe for success in 2015, for two weeks, five willing savers at financial comparison website Mozo.com.au roadtested one of the following saving methods:
1. No coffee and wine
Have you ever thought about how much money your coffee and booze habit is setting you back? We are not telling you to give up both altogether! But by being savvy and drinking your morning coffee at home and attending work events with free alcohol you could save hundreds over a short period.
2. BYO work lunches
For two weeks, all you have to do is bring leftovers for lunch everyday instead of buying the usual takeaway lunches. To be successful at not buying lunches during the working week stringent meal planning is a must, which means buying a little more ingredients and planning meals ahead.
3. Only spend cash in your wallet
Put the cash only savings strategy to the test, by withdrawing a set amount at the beginning of the week and enlist the help of a tracking app to get a better understand of where your money is going. Not only will this strategy help curb any unnecessary spending but it will also force you to set a budget.
4. Spend one week, save the next
This savings strategy is only recommended for the super diligent, as you’ll be put to the test with one week of cutting back on everything (and we mean everything!).
The first ‘normal’ week is just like any other week, with the usual weekly grocery shop at Woolies or Coles and bought work lunches and coffee each day. However, drastic changes are seen in the second week of the savings challenge as the groceries should be done at discount supermarkets like ALDI and buying coffee and lunch has to be sacrificed.
5. Save $10 notes you receive as change
If you are the type of shopper that pays with cash regularly, a savvy way to start saving is by putting any $10 notes you receive as change into your savings jar. Your piggy bank is sure to grow in a relatively short space of time by following this simple, yet effective method.
Savings challenge roadtest results
1. Only spend cash in your wallet - $444
2. Spend one week, save the next - $409.81
3. No coffee and wine - $302
4. BYO work lunches - $83.20
5. $10 note challenge - $70
Only spending the cash in your wallet came out as the winner, saving our road tester a mega $444 over a two week period, followed closely by spending one week and saving the next.
The savings challenge results are a clear indication of how important it is to create a set spending amount for the week and stick to it!
Top savings accounts for your cash stash
Now that you’re learned up on the best savings strategies out there, don’t forget to store that hard earned cash in a savings account with a juicy interest rate attached.