If you’re starting your first job or just wanting to hold on to some of your pocket money, knowing some simple tricks can help boost your savings.
It can even help you get your hands on some of those more expensive things you may want, like new clothes, a skateboard, and eventually even a car. Here are some key steps for saving success:
1. Set a savings goal
What is it you want to save for? Is it to build your savings, or are you wanting to buy a specific thing?
Either way, set yourself an amount to aim for and use reminders so it stays on your mind. Some people like to take a photo of what they’re saving for and put it up in their room, and CommBank customers can set up a savings goal in NetBank and name it.
2. Separate spending money from savings
Having your spending money separate from your savings helps create a barrier between you and your savings, and can remove the temptation to dip into your savings for day-to-day spending, like when you’re at the movies or heading for dinner with friends. This means you may want 2 bank accounts – a transaction account for spending and a savings account for saving.
With a CommBank Youthsaver account, you earn bonus interest if you grow your balance each calendar month (on balances up to and including $50,000), so having a separate account you use to make withdrawals can also help build your savings, as the bonus interest on your Youthsaver account won’t be affected.
3. Look at your earning versus your spending
List out what items you spend your money on in a regular week. Are you earning more than you’re spending? It sounds simple, but you need to be spending less than you’re earning to save. Don’t fudge the numbers – it’s important to be honest, as this will help you save faster.
Are there any places you’re spending money where you could cut back? The more you’re able to save, the faster you’ll reach your goal. It can help to think of your spending as needs and wants. The needs are things you have to spend money on, like bills, while wants are things like going out and clothes that you may be able to cut back on if you want to save more.
You can use our savings calculator to figure out how long it will take you to reach your goal by saving at your current rate.