There are so many good reasons to start saving money! It might be for that holiday you’ve been planning, your dream home that you’re finally looking at buying, or you may simply want to set money aside for unexpected bills and expenses. No matter what type of budget you have, finding ways to save money can help you learn to manage your money better and live more comfortably in the future.
1. Start a high interest savings account
A high interest savings account will increase your balance each time the interest is paid, making your savings work for you. Shop around for the best interest rates and terms. The higher the savings account interest rate is, the more money you can make on the funds you set aside.
2. Spend less on food
If you go into the supermarket with a shopping list, only to end up buying items you never planned on, it’s probably due to the store’s marketing strategy. Supermarket companies go to a great deal of trouble to learn what appeals to customers. It’s up to you to make sure they don’t lure you into the trap of making spontaneous buys that you don’t really want.
The more planning that goes into your grocery shopping, the less likely you are to overspend. Plan your trip and make a list. If you need help, consider an app that assists you in creating a shopping list. Allow yourself a certain number of splurges, like one sweet treat to enjoy or some snacks for when you have friends over. That way, you aren’t tempted to destroy your shopping plan, and you’ll stop and think before you buy.
Creating and sticking with a list also helps prevent buying too many items that will go to waste. Work a little harder to only shop for what you need. You’ll throw out less and you might even eat a little healthier.
3. Take a packed lunch to work
Packing your own lunch will save a lot of money and help encourage you to eat healthier. You don’t have to do it every day - consider packing lunch for four days of the week and then go out on the fifth one. You’ll still be able to add some money to your high interest savings account and your weekly “meal out” will give you something to look forward to in the working week.
4. Cut back on your vices
Whether it’s stopping by your favourite coffee shop for a large latte every morning or having drinks with friends, it’s worth making an effort to try and reshape the way you look at your social activities. Replace coffee from the coffee shop with the coffee machine in your office. Arrange for your friends to come over for drinks instead of going out to a bar. Making a conscious effort to cut back on certain things could result in big savings.
5. Create a written budget
It’s easy to overlook areas of heavy spending when using your card for most of your spending. Things like the best interest rates won’t matter or benefit you if you don’t make the changes you need to keep increasing your balance. Start by separating necessities from things that you can live without and allow yourself a certain amount of "play" money each week so that you don't feel like you're missing out, but can still put money aside.
6. Compare your plans
Are you getting the best cover for the price of your insurances? You might find you have cover for things you don’t need or that you can get the same coverage for less at another insurance company. What about your phone bill – are you using all of your data each month? Simply contacting your service provider and asking what's available could result in you getting a better, cheaper deal that still suits your lifestyle.
With storm season on the horizon, you might want to make sure your home is protected. Check out our Top 8 tips to protect your home during storm season for more information.
Having a plan in place to save for your goals or just for a rainy day can help to make it easier to tackle how to save, without feeling like you’re missing out on the things you enjoy. Small changes to your lifestyle, coupled with a high interest savings account can help you reach your goal faster.
Talk to our experienced staff about the best savings account to suit your needs.