Saving more in your savings account
Thursday August 28, 2008
Savings account interest may not make much of a difference to your savings goals unless you can keep a large amount of money in your savings account. If you find that you intend to save more yet end up with barely anything left after most paydays, then it could be a good idea for you to analyse just where your cash is going.
Some of the most common drains on savings are cigarettes, lunches, social spending, and impulse buys. All of these can be controlled as long as you remain focused on adding savings to your savings account.
Saying that cigarettes drain funds is an old chestnut, but it doesn't stop being true. Not everyone wants to give up the habit, though, so if you find you are spending more on cigarettes than you would like to, find ways of restricting your habit without spending even more money.
Eating out for lunch can drain $10 or more each day from your savings that could easily go towards your savings account. Even if you bring lunch from home only a few days each week you could end up saving hundreds of dollars more every year.
Social spending is the kind of money that can be easy to miss, as you don't want to appear cheap in front of friends. Nevertheless, if you learn to restrict this sort of spending, you could end up with more in your savings account. A hint that can easily save some money: never plan a night out around drinking. You're likely to spend more than you intended on alcohol, food and transport.
Impulse buys are the easiest thing to avoid as long as you can exercise some basic self-control. Plan a shopping budget and stick to it. If you find yourself trying to justify a purchase, go away and think about it, then come back another day. The word "SALE" does not necessarily need to cause a Pavlovian response to spend. Resist the urge to spend if you want to save more in your savings account.
Please browse our site if you would like to read about a St George Bank Dragon Direct Savings Account, a BankWest Savings Account, a RaboPlus Savings Account or an NAB Savings Account or visit our comparison page if you would like to compare savings and high interest accounts or to apply for a new savings account.
