1. Have a goal. Set recurring payments
Having a goal in sight and a plan to get there is a great incentive to save. Once you’ve decided how much you can afford to save - check out our top budgeting tips - and how often, then consider setting up a recurring transfer from your everyday account into your savings account. It’s a great way to get into a savings habit.
2. Bank your bonus
Try to resist the temptation to spend an unexpected windfall like a bonus. Use any spare cash to start an emergency savings fund so you’ve got cash available when you need it, or to boost your existing savings and make the most of compound interest.
3. Earn interest on your interest
Interest on most savings accounts is calculated daily based on your closing balance on that day, then paid monthly – it’s commonly known as compound interest.
Essentially the more you deposit into your account and the less you withdraw, the more interest you earn on your money. And so it continues, with you earning interest not only from the money you opened the account with but on the interest you’ve already earned.
4. Track your spending
Some people find it tough to find a balance between being frivolous and frugal. If you’re one of them consider splitting your post-tax income using the 50-30-20 rule, with 20% being the amount you set aside to save while the rest is for spending.
Once you’ve got an approach that works for you, make sure you keep track of your spending. If you bank with us take a look at Transaction Notifications, Spend Tracker & insights. And features like Lock, Block, Limit and spending cap for your credit card or Lock, Limit for your debit card.
Explore our simple steps to improve your financial wellbeing - tools, tips and guidance to help you manage your day-to-day finances, prep for the unexpected and make your future goals a reality.