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Five golden rules for money management

Finding it hard to save up? These five golden rules can make it easier.

Everyone needs a nest egg of some kind, even just for emergencies. Saving money is important, and even if you can only put aside small amounts it can still prove invaluable. The main benefit of saving money is that every dollar you put away can save you two later by giving you more financial options.

  • Avoid debt. Having savings can keep you out of debt, and prevent you from needing to take out payday loans or other financing.
  • Grow your nest egg. Your savings can accumulate. Even just by sitting in an interest-earning bank account your money is working for you.
  • Make your money work for you. With some money saved away, you can take advantage of more investment opportunities.

Unfortunately, not everyone is hardwired to be a saver. It comes naturally to some, but others find it a lot more difficult. Whichever group you're in, these five golden rules of saving can help.

The five golden rules

Even if you don't have much disposable income to consider putting away, it's still important to get started. Having zero savings is always a risk as any emergencies will usually see you needing to take out loans, or borrow money from family and friends.

Every bit helps

Find the right savings vessel

High interest savings account offer

UBank USaver

2.41 % p.a.

max rate

1.35 % p.a.

standard variable rate

High interest savings account offer

Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.

  • Maximum Rate: 2.41% p.a.
  • Standard Variable Rate: 1.35% p.a.
  • Monthly deposit required: $200.00
  • Monthly fees: $0.00
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Compare and search high interest savings account below

Rates last updated September 21st, 2019
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
UBank USaver
2019 Winner
UBank USaver
$0 / $0
Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.
Rabobank Online Savings High Interest Savings Account
$0 / $0
Maximum variable rate of 2.75% p.a. for 4 months, reverting to a rate of 1.30% p.a. No deposit or withdrawal conditions. Available on balances below $250,000
AMP Saver Account
$0 / $0
Introductory rate of 2.61% p.a. for 4 months, reverting to a rate of 1.65% p.a. The bonus rate offer is for new AMP Saver customers only, and applies to the first $250,000 deposited.
ME Online Savings Account
$0 / $0
Ongoing, variable 2.35% p.a. rate when you link to a ME Everyday Transaction account and have at least one purchase with your Debit Mastercard using tap & go processed each week. Available on balances up to $250,000.
HSBC Flexi Saver Account
$0 / $0
Ongoing, variable 2.15% p.a. when you grow your balance by $300+ per month. Earn bonus interest even if you make withdrawals during the month. Available on balances up to $5,000,000.
Suncorp Growth Saver Account
$0 / $0
Ongoing, variable 2.05% p.a. when you grow your balance by at least $200 (excluding interest) and make no more than one withdrawal in the month. Available on the entire balance.
Bankwest Hero Saver
$0 / $0
Ongoing, variable 2.10% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
MyState Bank Bonus Saver Account
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.

Compare up to 4 providers

Make it regular

  • Saving money on a regular basis makes a substantial difference, even if it's only small amounts. It also, importantly, helps get you in the habit of saving. This is more than just a psychological trick, and means having a system in place to effortlessly put any extra money into your chosen savings vessel. Finance apps are one an easy way to create these systems and take them with you wherever you are.

Don't borrow money to save money

  • Don't borrow money just for the sake of having savings, because it will all flow back out of your bank account in the end, taking even more money with it when it goes. Borrowing money to take advantage of investment opportunities is also generally inadvisable because it could leave you in a very bad position. Generally, the only situation where borrowing money can immediately save money is if you are taking out a debt consolidation loan and using it to refinance your existing debt.

Use incentives to reward yourself

  • Rewarding yourself for hitting savings milestones, such as for every $100 you manage to put away, is a popular tip for a reason. If you're one of the people who naturally struggles to save money this can make all the difference. By choosing rewards that you might buy anyway and planning them around discounts, you can still effectively grow your savings while rewarding yourself. Choose incentives that interest you and look for deals. You might hunt for discounts on fashion or deals on new shoes, while keen readers may be more interested in coupon codes for books. Find the deals that interest you and consider using them to shop for incentives to help keep your savings on track.
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