Putting a little money into your savings account really helps you work towards something positive. We’ve got some top saving tips so you can sit back and watch your account balance grow.

1. Savings goals

Try to create both short-term and long-term goals – they’ll help you feel like you’re constantly being rewarded

Short-term goals:

These could be something like ‘save up $100 to buy a new dress’ or, ‘save $200 to go to the Gold Coast for the day’. These goals are achievable just by making small changes during the week. Think of them as little weekly victories!

Long-term goals

Long-term goals are bigger, and could be ‘buy a new car’, or ‘go on a holiday to Fiji’. It’s helpful to have a solid savings plan to that keeps you on track, and it’s really rewarding seeing your savings grow each month. Check out RACQ’s savings goal calculator so you can see what you can put away today and how soon you’ll be living your dream!

2. The benefits of saving now

If you start saving now, you’ll have an enormous advantage as you get older.

Check out our example below to see how saving a little bit extra can really maximise your balance (and how interest really pays off!)

Savings Example 1 Savings Example 2 Savings Example 3
Initial deposit: $1,000 Initial deposit: $1,000 Initial deposit: $1,000
Regular Fortnightly Deposit: $50 Regular Fortnightly Deposit: $100 Regular Fortnightly Deposit: $150
Number of Years: 5 years Number of Years: 5 years Number of Years: 5 years
Compounding Frequency Monthly at 3.02% Compounding Frequency Monthly at 3.02% Compounding Frequency Monthly at 3.02%
Total interest: $665 Total interest: $1,168 Total interest: $1,672
Total savings: $8,165 Total savings: $15,168 Total savings: $22,172

3. Budgets

Making a budget is the best way to achieve your goals.
The easiest way to do this is to consider all money going in, and out, of your account and what you have remaining.
Incoming money $150.00 Parents, work etc.
Outgoing money $100.00 Bills, entertainment, food etc
Remainder $50.00 Savings

If you need a little help, follow the RACQ Budget Planner. You’ll be able to see exactly how much you can save each month and really get your savings rolling.

4. Savings accounts

Look for an account that’s got no account keeping or transaction fees and rewards you with a high interest rate.
It’s a great idea to open a transactional account for day-to-day spending and a separate account for your savings. You could have a ‘first car’ or ‘bali holiday’ savings account. It makes it super rewarding when you can see your savings grow for something you really want!

5. Question your spending habits

It can be easy to lose track of where you’re spending your money. Have a look at your bank statement and see where you’re spending. If you notice you spend a lot of money on coffee or magazines for example, ask yourself if you really need to be buying these so often as they could be pushing your goals further away.

6. Know what you’re spending

By knowing exactly where your money’s going you’ll be able to make small adjustments that really pay off in the future. If you want to track your spending, have a look at the ASIC Moneysmart track my spend app – you’ll be able to keep track of your expenses on the go.

7. Avoid the plastic

Money is easier to control than a debit card so try to spend in cash. Here’s a little exercise you can try and see if you notice any difference:
  1. Work out how much you’ll need to spend for the week
  2. Take out that amount in cash
  3. Put your debit card away
  4. Each time you pay for something, pay cash. You’ll be able to easily track what you’re spending.
  5. When you get paid next, put any extra cash into your savings account

8. Saving tips

  • Think about how much you can spend before you head out and give yourself a little budget for the day, or night
  • Before you impulse buy, ask yourself “do I really need that?”
  • Put your spare coins in a change jar and when the jar fills, deposit the amount into your savings account
  • Open a high interest savings account and automatically transfer money each time you get paid
  • Set a budget and make some long-term and short-term savings goals
  • Start saving today. It’s never too late and you’ll be happy you did tomorrow!

If you want a little extra help making a savings plan, or sticking to it, have a chat to someone you trust like your parents or another family member. If you want any advice about bank accounts or interest rates, RACQ Bank has specialists who can help you make the most of your money.

 

Banking products issued by Members Banking Group Limited AFSL/Australian credit licence 241195 trading as RACQ Bank. Fees, charges, terms and conditions apply. Contact us for a copy. This is general advice only and may not be right for you.

2017 Card Services is a division of Citigroup Pty Limited ABN 88 004 325 080, AFSL No. 238098, Australian credit licence 238098 (Citi). Citi is the credit provider and issuer of RACQ Bank Credit Cards (Credit Cards). Members Banking Group Limited ABN 83 087 651 054 trading as RACQ Bank (RACQ Bank) promotes the Credit Cards, and assists cardholders, as Citi’s agent, under an agreement with Citigroup. RACQ Bank does not and will not guarantee or otherwise support Citi’s obligations under the contracts or agreements connected with the Credit Cards.