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Keeping your savings on track

07/04/2021

Staying motivated with your savings can be tricky, especially if your circumstances change. We’ve got 3 tips to help you keep on track with your savings and financial goals.

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This past year, we’ve all gone through some level of upheaval due to COVID-19. Incomes have been impacted. Others have experienced a change in circumstances.

Any financial shift can feel stressful. But there’s also something to gain from the disruption – this is an opportune time to reassess your budget and ensure your savings are on track. Whether your situation has changed significantly or not, now’s the time to check in on your financial goals.

Why saving is good for your financial health

In a recent Mozo survey of over 1,200 Australians, 75% of respondents said they don’t have enough saved to cope with a crisis. One in five rely on lines of credit to get through challenging times.

A general guide is to first have enough to cover at least two to three months in expenses can help you weather the unexpected, whether it’s a temporary loss of income, a big expense, or a global crisis. It also brings peace of mind.

And that’s just the nitty-gritty of savings. Achieving your savings goals can help you become a homeowner, retire in comfort, and reach other important milestones that enable you to live life to the fullest.

So, what can you do to keep your savings on track? Here are some of the most effective tactics you can start using today to build your savings and be ready for anything.

1. Take advantage of technology to get your money sorted

How many apps do you have on your phone? To take saving seriously, it’s time to make room for one more. Saving and budgeting apps are powerful tools because they help you visualise where your money is going.

Once you gain clarity over how you’re using your disposable income, you can identify where there’s room to reduce spending and increase savings, or you may decide to look for ways to increase your earning power to help you save more.

There are plenty of options so do your research and find one that best suits your needs. Your bank might also have a free budgeting app or tools.

2. Create digestible goals to stay motivated

Saving for a home, retirement, or even your emergency savings fund can feel overwhelming if you’re just getting started. The truth is, every dollar you put away is getting you closer to your goal. You just need positive reinforcement to help you stay inspired along the way.

Break down your big goals into achievable chunks. You may be saving up for a $50,000 deposit for a home, but that doesn’t mean you need to hold that number over your head. Focus on incremental steps, such as every $2,000. This is a more accessible number for most people, and it’s more motivating to have goals that seem within reach.

You can also create separate savings accounts for small goals – a new car, holidays, new furniture. Watching each of these fill up is gratifying because you can link the savings to specific wants and needs.

3. Make saving effortless, and you'll always stay on track

Once you assess your budget and decide how much you can afford to save each month, make it easy on yourself. Set up an automatic monthly deposit from your everyday banking account to a high-interest savings account. Another option is to set automatic reminders on your phone.

The more effortless saving is, the easier it will be to stay on track. And the more you save, the more control you have over your finances and your life.

This article is intended to provide general information of an educational nature only. This information has been prepared without taking into account your objectives, financial situation or needs. Information in this article is current as at the date of publication.

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