17 Jun 2010
It seems that right now everyone is talking about budgets and taxes as we get ready to head into the new financial year, so there is probably no better time than right now to start getting our own finances in order.
When looking over your finances, it’s a good idea to start with where you can save money. It’s always good to have some money saved away so that you don’t have to live week to week. That little bit of spare money set aside can help provide for any unexpected bills, a holiday, a new car, renovations… all without having to take on debt.
Savings might not mean much to you right now, but if you take a look at the bigger picture, having savings means you will have money for larger purchases like a deposit for a home!
Saving money isn’t as hard as it’s made out to be either. Work out what you want to put aside each day or each week. It could be as little as $20. Some people like to allocate a percentage of their wage eg. 5% or 10%. The money needs to go into an account that earns you interest. Ask your bank or shop around on the internet for the best deal (don’t forget to take into account any penalties such as transaction fees, account keeping fees, or one-off charges).
It definitely pays to shop around and compare features, interest rates, fees and charges. Some people find it useful to have more than one type of account. For example, most of your pay could go into a savings account for day-to-day expenses and small bills while the rest goes into a special purpose savings account, but all this will depend on your personal situation.
Have a talk to a financial expert if you like and start figuring out where you can save money. Because the more you save now the sooner you will be able to buy your first home or maybe your second, third or fourth!