Having something to look forward to in the future, whether it be a car, a holiday, or even a house, is always an exciting feeling. For many, these exciting ambitions, whether small or large, can seem like impossible objectives.
Swoosh have compiled a few great tips to get you started on your saving journey!
Pay off debt as soon as possible
Maintaining debt is a sure-fire way to have you losing money unnecessarily over a long period of time. Although there might be a temptation to save alongside you paying off debt, by focusing all of your money into paying debts first, you will save money in the long run.
Money owed on things like high interest credit cards can amass very quickly, and the interest you are paying is likely to be more than you will make from the stock market or high interest bank accounts. Over time this increasing debt has the power to eat back into your savings, or see you spiral into greater debt.
This isn’t to say that paying off debt should always take precedent. If you don’t have any emergency funds stored away, this can be highly useful to organise before you start paying your debt off exclusively. Just ensure you reach your emergency funds goal, and then start repaying your debt from there.
Have regular withdrawals come out of your savings account
Setting up withdrawals to automatically come out of your account works effectively for saving in a variety of ways. The first is the most obvious – money is taken out of your account and placed into a high interest savings account or similar, where it accrues interest. Larger amounts of money in these accounts invariably lead to more interest every month without account holders having to do anything else.
The second advantage is more of a lifestyle change, which has the power to transform temporary habits into long term behaviour. Because having money transferred out of your spending account leaves you with less money to actively use every pay check, an adjustment must be made to how money is spent every month. This ultimately leads to new spending habits that can last long into the future, with even more potential for money saved in the long term.
Get a piggy bank for loose change
Although it may seem like an outdated or childish thing to do, having a piggy bank in your home is a very underrated way to save money.
Every time you might have loose change in your wallet, it’s a great idea to drop it into your piggy bank (you obviously don’t have to buy an actual big shaped moneybox any container will do!). This can be a highly effective saving method because the loose change is rarely missed but has the power to add up significantly over time – even just $2 a day can add up to over $700 a year, and when this is combined with a high interest savings account, savings become noticeable.
Once you think your piggy bank starts getting heavy from all the change you’ve been regularly depositing, take it into your bank branch and put it directly into your savings. This works excellently as a monthly routine, getting you into the habit of making your new piggy bank work for you.
Almost reached your goal?
If you’ve been saving for a while and are just within reach of your goal, Swoosh can offer the help you need. We know you have the power to save, which is why our fixed term loans are perfect for people who need that little bit extra to play around with. Scheduled repayments make things even easier – contact us today to learn more.