Separate savings from transactions, says Yellow Brick Road

Australian consumers have been urged to separate their savings from their transaction accounts as they look to get their financial goals on track.

Writing recently in the Sunday Telegraph, financial services firm Yellow Brick Road noted that the New Year is a time when people often set themselves a wide range of savings goals.

"Goals themselves don't need too many specifics. A goal might be to buy a house, or to be physically fit by a certain date," it said.

"It's the strategy that has to be specific. If the goal is the destination on your map, the strategy is the route you devise."

Getting into such specifics, the company urged consumers to compare savings accounts and select a high-interest option for regular deposits in order to ensure that a regular pool of money is built up separate to everyday transaction accounts.

It was also suggested that savers set up a direct debit from their transaction accounts or a direct payment system from their employers to prevent savings from entering "the weekly mix of your household accounts".

The advice comes as Abacus Australian Mutuals chief executive Louise Petschler recently told National Features that now is a good time to start building up funds in special Christmas Club accounts ahead of the next festive season.

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