Set specific financial goals
Identify what you want to save money for, whether it’s a down payment on a house, a retirement fund, or an emergency fund. Having a specific goal in mind can help you to stay motivated and make saving a priority.
Your financial goal should outline:
· How much you aim to save
· What time frame you are aiming for
· What you want to purchase with the saved money
These three simple questions will assist you in creating your goal and having a structured plan to achieve it. For example:
I plan to save $50000 over 5 years to put a down payment on an investment property. My personal finances allow me to put aside $200 per week into a high-interest savings account. Without taking any form of interest into account, in 5 years, I will have $52000 for my first investment property.
This is a very simple example and there are many contributing factors and considerations that need to be thought of before being able to set your financial goal. There are times when you may not be able to make your goal in the specified timeframe due to different factors. There is always adaptations and hurdles to overcome when trying to save money. Just keep your head in the right direction, and you will one day be able to reach that goal.
Create a budget
A budget can help you to identify areas where you may be able to cut expenses and save money. This can include reducing your spending on non-essential items, such as dining out or entertainment, and finding ways to save on essential expenses, such as by shopping around for the best prices on groceries or utilities.
Automate your savings
Set up automatic transfers from your checking account to a savings account to help you consistently save money without having to think about it. You can choose to have a set amount transferred each month or week, or you can set up automatic transfers whenever you receive your income.
Reduce debt
Paying off high-interest debt, such as credit card debt, can help you to save money on interest payments and free up more of your income for saving. You can do this by making larger payments towards your debt each month, or by consolidating your debt into a single loan with a lower interest rate.
Shop around
Take the time to compare prices and shop around for the best deals to save money on a wide range of expenses, from groceries and clothing to insurance and home improvement projects. Utilise online comparison websites to simply compare prices of the same or similar products.
Cut unnecessary expenses
Look for ways to cut unnecessary expenses, such as canceling subscriptions or memberships that you don’t use, and finding ways to save on essential expenses, such as switching to a cheaper cell phone plan or energy provider.
Increase your income
Increasing your income can also help you to save more money. This can include negotiating a raise at work, starting a side hustle, or investing in assets that generate passive income.
Create separate savings accounts
Creating a completely separate savings account will stop temptations and allow you to focus more on your financial goal. If you are someone who struggles with consistently spending your savings, then it is recommended to open a savings account with a completely separate bank. This separate bank account should not have any debit card attached to it and payments into the account should be automated.
There are also options to have dual authorisation for any withdrawal. This means that for you to withdraw money from the savings account, you require the signature of yourself and another person who opened the account with you. It is recommended that this person be a parent, guardian or partner. This helps to restrict the freedom you have to unnecessarily withdraw funds.
Utilise apps to help you save money
In today’s society, there are many apps available that help everyday people save money. Each app offers different ways for you to save money. Many of these applications also have automated functions that are connected directly to your bank account, meaning that you can save money without really noticing it. Here are a few examples of available saving apps:
Raiz
Raiz (formerly known as Acorns) is an Australian-based app that helps users save and invest small amounts of money. The app rounds up the user’s purchases to the nearest dollar and invests the difference in a diversified portfolio of exchange-traded funds (ETFs). The app is designed to make investing simple and accessible to people who may not have a lot of money to invest at one time.
Users can open a Raiz account with no minimum deposit. The app offers six diverse EFT (exchange-traded fund) portfolios to choose from, based on the user’s risk tolerance and investment goals. Users can set up recurring investments or make additional one-time investments. Utilising roundup technology, you may even choose to invest or save every time you make a transaction through one or more connected transaction accounts. Cashback alternatives are also available when you make a purchase from affiliated brands.
With Raiz, you can pick the size of your contributions to align with your goals. You can also withdraw their money at any time. The app also offers educational resources that provide information about the investing process and how to manage your portfolio.
Other features include:
Personalised spending insights that include categorisation
Push notifications with savings recommendations based on machine learning to help forecast your future expenditure
Chatbot support, who you can things like “How much did I save last month?”
Bank-level security to safeguard your data and funds
MoneyBrilliant
MoneyBrilliant is a personal finance app that is designed to help users manage their money in one place. The app allows you to connect all of your bank accounts, credit cards, loans, and investments in one place, so you can see your complete financial picture at a glance. With this app, you can budget, track your expenses, and set savings goals in an easy-to-use interface.
The app’s budgeting feature allows you to set budgets for different spending categories, such as groceries, dining out, transportation, etc. You can also track your expenses and see where your money is going, so you can make adjustments to your spending habits as needed.
One of the key features of MoneyBrilliant is its ability to help you find savings opportunities. The app analyses your spending and looks for ways to help you save money, such as suggesting ways to lower your bills or find better deals on products and services.
Other features include:
Sync to Australian bank accounts, including superannuation and investments
Automatically finding the cheapest gas and electricity deals based on your usage data
Set savings goals and budgets, and track progress
Track tax-deductible expenses
Backed by Westpac to offer bank-level security
ShopBack
ShopBack is a cashback and rewards platform that allows users to earn cashback when they shop online through the ShopBack app or website. The platform partners with a wide range of online retailers and e-commerce sites, such as Amazon, Uber, Expedia, Sephora, and many more.
Users can access the deals and discounts offered by these retailers through the ShopBack app or website. When they make a purchase, a percentage of the purchase amount is credited back to the user’s ShopBack account as cashback. Users can then transfer their cashback to their bank account, PayPal, or use them as credits to make purchases on the app.
Additionally, ShopBack also offers coupons and deals on products and services from over 500 stores. Users can save up to 30% on anything from travel to clothing, groceries, electronics, and many more.
Frugl
Frugl is a mobile app that helps users find deals and discounts at local businesses. The app is location-based and helps users discover deals and discounts in their local area, such as discounts on food and drinks, and services like haircuts, massages, and more.
Users can search for deals by location, category, or by business name. The app provides detailed information on each deal, including the business name, location, deal details, and expiration date. Users can also save deals to their account and receive notifications when deals are about to expire.
Other features include:
Find almost 10,000 grocery deals each week, with discounts of up to 50%
Compare over 40,000 products and prices between various major supermarkets
Set up your dietary profile to filter out items that match your allergy/allergen profile
Create your own custom lists or create household lists to keep track of what is in the pantry and fridge
FuelMap
FuelMap is a mobile application that helps users find the cheapest petrol station nearby or within a specified area. The app allows you to find petrol stations by location or postcode and gives you up-to-date fuel prices. The app covers most petrol stations in many countries, and the prices are updated by users and the stations themselves.
FuelMap provides a simple interface for users to quickly and easily find the cheapest fuel near their current location or a location of their choice. The app allows users to filter their search results by fuel type, including unleaded, diesel, and LPG, as well as by brand. Users can also see which petrol stations are open 24 hours, and that have amenities like toilets and snacks.
Other features include:
Crowdsourced database of petrol stations and fuel prices
Locations of petrol stations shown on the map as branded pins with the last known fuel price displayed above
Fuel log to keep track of your fuel purchases, as well as your vehicle’s fuel economy