Big financial decisions can be overwhelming, particularly when saving can be so difficult. Swoosh wants to make saving money in the long run simpler by providing a few no-nonsense tips – read on to find more.
Overcoming the temptation to buy a new car
Many of us have wanted a new car at some stage. A perfect coat of paint, laundry list of features and that enticing new car smell are all great – but are they worth the huge cost of a new car?
As soon as a car leaves the showroom, it already loses a hefty chunk of what you might have purchased it for. Although the warranty might be one of the reasons why you chose to buy a new car, it might be a good idea to look for this warranty elsewhere. Keeping an eye out for a second-hand car that still retains a new car warranty (and maybe even a new car smell!) is a great option, as is buying a car with warranty from a dealer for additional peace of mind.
If you’re lucky, you might be able to pick up the new car you were eyeing off with few kilometres for several thousand dollars less than you otherwise might have spent – a worthy investment indeed.
Cheaper does not always translate to better value for money
Big life investments are always a difficult thing to properly assess. Spending big requires very careful and focused saving, and the allure of cheaper alternatives can be very tempting. Going cheap, although saving you money in the short term, can wind up costing you much more than you bargained for.
There are many purchases that benefit from choosing more expensive options, keeping in mind that more expensive does not necessarily translate to top of the line. Investment purchases like solar systems always benefit from homeowners steering clear of cheaply made panels, as these carry small warranties and are made by companies that may very well disappear in the near future, leaving warranty claims impossible to pursue.
Similarly, choosing the cheapest insurance policy might seem like a good suit, but it’s important to really consider what you might need out of it. Whether it be health, travel, or car insurance, researching your policy (and all relevant small print) can save you in the long run – exclusions, caveats and steep excess payments can all serve to have you forking out for much more than you signed up for.
Divide your bank accounts
Managing bank accounts is never a fun or easy task, but with a little bit of foresight, opening the right accounts can better get you on track for saving.
Banks offer online-only accounts that are perfect for this kind of saving. They are usually fee free and offer higher rates of interest than regular accounts, with the added benefit of having no card attached to them. This means it’s spending money from these online accounts is much more difficult than regular savings accounts, because it takes time to actively transfer money from one to another. In these instances, rash purchases might not seem as attractive as they otherwise would – when your main account shows that you only have a certain amount of money on a night out, there’s a much better chance you won’t be blowing the lot at the bar.
Having this other account is also an excellent reminder of the need to save. With one account, money for saving and money for spending are one and the same, but an account dedicated to saving may incentivise saving. There may even be a little bit of guilt for seeing an empty savings account, which may very well work in your favour! Saving up for your next big holiday or a new (but really second hand, as we mentioned above) car is sure to become a much simpler process.
Looking to invest in something in the near future?
Saving over long periods of time is hard work, and the team at Swoosh know that even with saving, the unexpected is always bound to happen. If you’re looking for funds between $2,100 and $5,000, consider one of our easy fixed term loans. Scheduled repayments and a streamlined approval process mean that repayments are easily factored into your lifestyle, leaving you headache free. Get in touch to find out more.