The Count Report - No. 109

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WEALTH CREATION

Seven simple saving tips
Feel good about saving with these tips to help you reach your goal – whether that be a house deposit, a dream holiday or a car!

Saving is a cornerstone of wealth creation but the skill of saving is rarely discussed. Whether it’s for a deposit on a first home, a new car, a dream holiday, a batch of shares or simply some new furniture, saving is an essential part of budgeting and, therefore, of wealth creation. No matter what it is that you’re saving for, here are some tips to help you get there.

  1. What do you ‘need’ and what do you ‘want’? If you don’t spend money on ‘wants’ then saving becomes much simpler. Rather than feeling glum about sacrificing so many things you’d love to buy, change your mindset to focus more on the important things in life, like family and friends. As well as saving more, you might actually be happier, through a greater sense of peace of mind and accomplishment!
  2. Set savings goals and put them on a timeline. Figure out how to meet each milestone. Success can only come with a realistic plan with small increments such as weeks and months.
  3. Celebrate your wins. When you reach each goal be sure to reward yourself.
  4. If you don’t know where you’re going, you’ll never get there. In other words, know what it is you’re saving for and be passionate about it. For example, if you’re saving for a house, don’t just think of it as a house, think of it as the place you’ll call home and a place you’ll build a new and exciting life.
  5. Figure out small ways to save big money then work out what that saving will actually mean. For instance, if you’re saving for a holiday and you decide to go without your weekday take-away coffees for six months, it’ll add up to a saving of around $520, which translates to an extra three nights at that beachfront hotel.
  6. Record every dollar you spend, and what you spend it on, for a month. You might be surprised to discover that what you think you’re spending and what you’re actually spending are quite different. Then figure out where and how you can cut spending. If you stop in at the bakery for a snack on the way to the supermarket, for instance, instead make some toast before you go grocery shopping.
  7. Your savings plans could fail if you don’t actively manage your money. Be aware of what you save and where your money goes. Check your online account every few nights and watch it grow. Make saving a part of your life and if you see the figures sliding, don’t ignore it but instead do something about it.