Do you want to limit your spending and increase your savings?
Credit cards and loans are an invaluable resource, but the most financially sound way to purchase something special is by saving up the money yourself. Saving doesn’t need to be hard; by making a few easy adjustments and developing some good habits you can start building your own nest egg.
Follow these three simple steps to help control your spending and save more effectively:
Create a budget
The easiest way to identify where you can save is to create a sound budget. Your budget should factor in your regular income and all of your short and long-term expenses. This will help you to potentially pinpoint any wastage. Deduct inevitable expenditure such as rent, bills, mortgage or credit card repayments from your regular wage to calculate how much you should have left over each month. If there is a huge discrepancy between how much you should have left and how much you actually do then you should consider monitoring your spending more closely. Try our Budget Account to set aside the money you need to cover regular expenses.
Set yourself up a savings account
One of the best assets you can have when trying to save is a flexible savings account. If you leave all of your money in an everyday account, not only will you be missing out on higher interest rates, you are more likely to spend it. There are plenty of savings accounts to choose from, so do your homework and choose the account that best suits you. Try to find a manageable account with high interest rates, such as our Cash Management Account, which will reward you with higher interest for larger balances. Once you are all set up, proactively monitor your savings account to view your progress and keep you on track.
Put money aside as often as you can
Making regular contributions to your savings account will help you save faster and more effectively. Try setting up an automatic transfer of funds or arranging for part of your salary to be credited directly into a high interest account each month. Leave enough behind to comfortably cover everyday expenses and try to treat the money that you transfer over as if it has become untouchable. If you have spare money but are worried you won’t have the discipline to self-manage your savings, a term deposit is a highly effective way to save while benefitting from fixed interest rates.
We offer accounts and services specifically designed to help you save. Talk to one of our consultants about limiting your spending and maximising your savings.