Tips from ME: Reach your financial goals without giving up your daily coffee
This article is brought to you by ME.
If you consider the average Australian wedding costs around $36,200 and the average home loan is around $384,700, reaching your financial goals can seem like a daunting task.
In reality, reaching any savings goal is achievable without having to give up your daily pleasures –industry super fund-owned bank ME show you how it’s possible.
Tip 1: Track your spending, set a budget and plan goals
Get to know your spending habits – it’s a great way to identify areas where you can cut back. Draft a household budget and make room for regular savings.
Then think about your short, medium and long-term financial goals and how much these goals will realistically cost. Having a concrete goal in mind is great motivation to actually stick to your budget.
Tip 2: Get serious about paying off your credit card debt
If you’re thinking about putting your pennies away, the first thing you should consider is eliminating existing debt. Not only will you eliminate stress, you’ll be able to borrow a larger amount if you’re in the market for a home loan and you’ll be saving money on interest.
Tip 3: Lock cash away
Automatically transferring a portion of your pay each week into a high-interest savings account is a reasonably pain-free way to start saving, rather than sacrificing your beloved daily latte. You also benefit from compounding interest returns.
Tip 4: Remember that every dollar counts
Setting yourself a weekly challenge to save, like $50 a week, is an effective way to see your cash stack up, and it’s easier than you think. Try introducing habits that mean you can still enjoy those little daily indulgences without detracting from your savings goals – like taking your lunch every day to work, riding your bike to and from the office, or having friends over for dinner instead of eating out.
Aiming for an amount like $50 a week in savings could leave you with an extra $2,500 a year in the bank – a significant amount that can come about with relatively small changes to your lifestyle.
Tip 5: Stop sponsoring your gym
Take a look at all your direct debit outgoings and re-evaluate whether you need to keep them. If you haven’t been to the gym in three months, think about cancelling the membership and exercise outside instead. The same goes for magazine or TV streaming services you don’t need. You can always sign up again in the future if you need to.
Tip 6: Weigh up your options
Have a good look at some of your major yearly expenses to see if there are ways to save. Insurance providers don’t always tailor their cover to suit your needs, so consider checking sites like ‘iSelect’ or ‘Compare the Market’ to find a better deal.
Finally, if you have a home loan, it is likely to be your most significant financial commitment so it’s certainly worth casting your eye over it at least annually to check it still offers a competitive rate combined with the features you need.
This article is brought to you by ME. For more information, please visit www.mebank.com.au
Members Equity Bank Limited ABN 56 070 887 679.