Savings planner

Increasing your savings involves several strategic steps:

• Set clear savings goals: Establishing specific savings objectives is essential for staying motivated and focused. Whether it’s saving for a deposit on a house, building an emergency fund, or planning for retirement, defining your financial goals is the key to sticking to them.
• Develop a detailed savings plan: Once you’ve identified your savings goals, create a comprehensive plan outlining how much you need to save regularly and the timeline for achieving each objective. Consider factors such as your current income, expenses, and any potential fluctuations in financial circumstances to know how best to attack your target.
• Automate savings: Take advantage of online banking tools available in your bank account to set up scheduled transfers from your checking account to your savings account. This ensures consistency in your savings efforts and reduces the temptation to spend money impulsively.
• Optimise savings accounts: Explore different savings account options to find ones offering competitive high interest rates and favourable terms. High-yield savings accounts or fixed-term deposit accounts may provide higher returns on your savings compared to traditional savings accounts. Compound interest is your friend, so make sure it’s working for you (and don’t forget to check the t&cs!).
• Manage debt effectively: Prioritise paying off high-interest debt, such as credit card balances or personal loans, as it can eat into your savings potential. Consider strategies such as debt consolidation or refinancing to lower interest rates and accelerate debt repayment.
• Review expenses and lifestyle choices: Being a good saver means you’re a good spender. Regularly assess your expenses and identify areas where you can cut back or eliminate unnecessary spending. This could include reducing dining out, canceling subscription services you don’t use, or finding more cost-effective transportation options. Increasing your savings without increasing cost-of-living pressures is important to remaining consistent with regular savings.
• Reconsider high-interest debt. Do you really need the personal loans, credit cards or other high-interest personal debt? Not only can they affect your credit score, but the high repayments may hinder your capacity to save money. A refinance to consolidate your repayments to a lower-interest provider may help you reduce your interest rates. Did you know that $10,000 in credit card debt can reduce your home loan borrowing power by as much as $40,000?
• Make better informed financial decisions. Your financial situation is unique to you, and you could benefit from seeking independent financial advice from an Australian independent advisor to help you with your savings plan and selecting financial products that are right for you.

By implementing these steps, you can gradually increase your savings and work towards achieving your financial goals.

Each Australian Territory or State has eligibility criteria that qualifies new home buyers for concessions. Find out if you qualify and where to find more information in the Guide.