Thrifty Tips To Help Your Savings Balance
For many of us, the new year means resolution time. Unfortunately, one of the realities that hits home is the ability to afford your goals for the coming year. If you’re lucky, some of these will be free. For example, you might have your heart set on getting more sleep. Although tricky to achieve if you have a household with children, this will not cost you anything (except some of your sanity)! For other things, whether it be a holiday, paying down credit card debt or saving up for a few personal splurges, some more fiscal planning is in order. Read below for our top cash saving tips to help you meet your goals in 2018.
For special events and holidays, divide the cost by the number of weeks or pay cycles you have until the big day. Putting aside $50 each pay check is probably a lot more reasonable than coughing up $500 in one go for an occasion. Don’t be tempted to pop it all on credit, high interest rates are not worth it, especially if you take awhile to pay off the balance.
While we’re here, it’s best to address these first in your financial goal setting. Credit cards are bad debt, particularly because they are so easy to rack up large bills. While many cards offer rewards such as frequent flyer points or money off your grocery shop, if you spend on these pay them off before any interest is occurred. This means paying the entire balance, not just the minimum amount due!
The cash rate remains low in Australia, meaning term deposits offer pretty paltry returns, however, there are perks to be found in online saving accounts. The main difference with these is that you will need to periodically deposit a certain amount each month to qualify for a bonus interest rate. If you are likely to forget to do this, set a reminder in your phone to regularly put away a certain amount into savings as soon as you get paid. Don’t be afraid to shop around and open a few different accounts. Some people actually manage their cash better with various ‘pots’ of money for certain things e.g. Christmas, new car and home renovations.
A bit on the side
Whether you have skills in gardening or graphic design, chances are there will be others out there who are willing to outsource their work to you. If your current income simply won’t allow you to save as much as you need, consider freelancing to boost your bank balance. Online sites from Airtasker, Freelancer, Fiverr or Upwork will allow you to post your skills and bid for jobs. One you complete a few tasks, you may find you gain regular clients and work directly with them. Don’t forget good old classifieds and Gumtree!