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November 15th, 2018
If you’ve got nagging doubts that you could be saving more, then you’re not alone.
Industry super fund-owned bank ME highlights five red flags that suggest it could be time to start squirreling away a little more, with tips to boost your savings.
1. You’re living payday to payday Who doesn’t love payday? But if you’re regularly sweating the arrival of your next wage payment, it could be a sign that you need to take action – fast. Think about putting aside some cash at the start of each pay cycle. What’s left over is yours to spend; just don’t dip into your savings. ME’s free online school of money, Ed, has a useful module called ‘Budgeting’ that can help you learn about setting goals, making a budget, and putting good money habits into place.
2. You have no idea how much you’re spending So much of our spending is digital these days and between buy now, pay later services like Afterpay, and cash-free platforms like Uber, it can be hard to know where your money is going. Try tracking your spending for a week or two. Plenty of apps make it easy – such as ASIC’s TrackMySPEND – and chances are you’ll be surprised at how much money is flying out the door on unnecessary purchases which you could easily cut back.
3. The arrival of bills sees you scrounging for cash Continually running late with regular household expenses can mean you get hit with late payment penalties. Longer term, it could even damage your credit record. Growing your personal savings means not having to scrounge for cash every time a bill arrives.
4. You’d struggle to cover an emergency bill One in four Australians have less than $1,000 in cash savings, according to ME’s Household Financial Comfort Report, and that can turn an unexpected expense into a financial crisis. With the safety net of some savings, you’ll be free from worries about how you’ll manage a surprise expense. Barefoot Investor calls emergency savings the Mojo Bucket and recommends stashing $2,000 into it.
5. You don’t have savings goals to work towards Setting a few personal goals can be a big motivator. The secret is to make your goals measurable and achievable. Work out what you’d like to aim for – maybe a holiday or some new furniture. Work out how much you need to achieve your goal, and then make it happen by deciding how much you can comfortably save each week, fortnight or month.
Growing spare cash is easier when you approach savings on autopilot. Set up a regular transfer of funds out of your everyday account and into a savings account. You’ll be amazed at how quickly your savings build up.
You can get individual advice on your finances by talking to a First Super Financial Planner. Visit our website or call our Member Services Team on 1300 360988 to book a call.
This article is brought to you by ME. For more information, please visit mebank.com.au Members Equity Bank Limited ABN 56 070 887 679.
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