Amidst the rising cost of living in today's economy, saving money has become more challenging for some.Over the past 12 months until June 2023, Australia's Consumer Price Index (CPI) has surged by 6.0%1 , resulting in significant price increases for essential living expenses such as goods, services, housing, electricity, gas, and education.
Nonetheless, with the right guidance and smart spending habits, it's possible to navigate these challenges and progress towards achieving your financial goals.
Here are seven practical strategies that can aid in boosting your savings amidst the rising cost of living.
Take the time to carefully review your bank and credit card statements to identify any unnecessary expenses. Look out for unused subscriptions, luxury items, or opportunities to opt for more cost-effective alternatives. These minor adjustments can add up significantly in the long term.
For enhanced organisation, consider using bill tracking or budgeting apps
It could also help to prioritise essential expenses like rent, groceries, and utility bills, and build a monthly budget around them. Consider including savings to this list, setting aside a portion of your income each month for safekeeping.
For enhanced organisation, consider using bill tracking or budgeting apps. Our Mobile App, for example, allows you to monitor your expenses and receive alerts for card and account activities, helping you stay on top of your financial situation.
Reduce temptation by automating your savings. You could arrange with your employer to direct a portion of your salary directly into your savings account. Alternatively, you could use an online banking system to set up automatic transfers to your savings account every payday. By doing this, you can prevent the chance of “forgetting” to save or giving into spending your entire salary.
Use online banking to set up automatic transfers to your savings account
Additionally, when you receive extra money, like bonus payments or cash gifts, consider automatically depositing them into your savings accounts. Given that this money is categorised as “extra” and not necessarily essential for your immediate needs, it may be prudent to set it aside for future financial security or to fulfill specific savings goals, such as funding your next big trip or contributing to a mortgage deposit.
Choosing a high-interest savings account may be one of the simplest yet most effective method of achieving your savings objectives. If you don't withdraw, the interest you accrue on such accounts provide the benefit of compound interest on your savings, helping your money to grow over time.
A bonus interest rate account can help boost your savings goals
Introducing our Bonus Saver account – a high-interest savings account (if you qualify for our bonus interest) that offers competitive interest on all balances, calculated daily and credited monthly. You will qualify for our bonus interest if you don't make any withdrawals during a calendar month. With no account keeping fees and no minimum balance requirements, this account is a convenient and accessible choice for those striving to expedite their savings journey.
Having a savings account comes with the potential added advantage of curbing impulse spending. When you realise that withdrawing money from your account might result in forfeiting potential interest and hindering progress towards your savings goals, you may be likely be less inclined to make impromptu withdrawals.
Our Bonus Saver account goes the extra mile by rendering it inaccessible via card usage. By refraining from accessing your savings through cards, it helps foster the discipline needed for cultivating healthier spending habits in the long run.
Groceries and utility bills are often the largest areas of “essential” spending, and with current inflation, these costs may increase further.
Consider grocery comparison apps to help find the best deals.
To combat these expenses, consider planning meals ahead, taking advantage of specials, and comparing unit prices at the store. Grocery comparison apps can be particularly helpful in finding the best deals. Additionally, you could reduce your electricity bills by heating or cooling single rooms and turning off appliances at the power point when not in use. These simple adjustments could lead to noticeable savings on your monthly bills.
If you find yourself facing financial hardship, remember that you don't have to handle it alone.
There are various financial assistance programs available nationwide to provide support for different situations, includig crisis payments, JobSeeker assistance, and childcare subsidies. If you need further guidance, consider reaching out to the National Debt Helpline at 1800 007 007 for assistance.
Our dedicated Financial Assistance team is also here to help.If you need support regarding your finances, our team may include fee waivers, loan repayment modifications, and debt recovery suspensions if you're going through hardship.
As you embark on your savings journey, it's important to set realistic plans to stay motivated and on track. Regularly assess your progress on a monthly or quarterly basis and ensure that your milestones align with feasible goals. If necessary, be open to adjusting your savings goals.
You could also consider adopting the 50/30/20 budget system2 as a helpful approach. Allocate 50% of your income to necessities, dedicate no more than 30% to discretionary spending, and save at least 20% of your earnings. This system may help you manage your personal finances effectively.
Finally, while saving is important, it's also essential to strike a balance and not deprive yourself of occasional treats or leisure activities. The key is to be disciplined while responsibly enjoying life's pleasures.
Consider opening a savings account with us to foster better spending habits and accelerate your financial goals. Our Bonus Saver account may be just what you need to boost your savings for the long term.
Get in touch with us today to explore how we can help you achieve your financial aspirations. Call us on 1300 747 747 or view our range of savings account on our website www.qudosbank.com.au
References:
The information in this article is of a general nature and has been prepared without considering your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness to your objectives, financial situation and needs. Before opening an account with us, you should read our Terms and Conditions for Savings Accounts and Payment Services and Financial Services Guide. The Target Market Determination for Qudos Bank’s Bonus Saver can be found at https://www.qudosbank.com.au/support/legal/target-market-determinations/ Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557 AFSL/Australian Credit Licence 238 305.
We acknowledge the Traditional Owners of the lands on which we operate and pay our respects to Elders past and present, and to emerging community leaders. We also acknowledge the important role Aboriginal and Torres Strait Islander peoples continue to play within the communities in which Qudos Bank operates and where our team members reside.
