Saving money might seem difficult, but it can be a lot easier with some basic tips:

1. Have a goal. Set up recurring transfers.

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 spending and saving. 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 found an approach that works for you, make sure you keep track of your spending. If you bank with us, take a look at Transaction NotificationsSpend 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, prepare for the unexpected, and make your future goals a reality.

Set a savings goal in NetBank

Log on to NetBank

Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs. You should, before acting on this, consider the appropriateness to your circumstances.