4 smarter ways you can manage your savings in 2024
Discover some of the ways you can build your savings and set yourself up for success this year.
Sponsored by Newcastle Permanent. Open an Online Savings Account with Newcastle Permanent and eligible new account customers will receive a special introductory rate of 5%p.a. for the first 3 months. Interest rate effective from 05/03/24. Eligibility criteria, T&Cs, fees & charges apply. General advice only - click for important info.
It's always important to look for ways to save for the future.
So whether you're putting together an emergency fund, looking to buy a house or simply just want to develop better financial habits, we've got some tips for you.
1. Set up a dedicated savings account
One of the most common mistakes people make with their savings is not having a dedicated account for them.
Day-to-day accounts typically don't generate much interest – so it's worth looking for a dedicated savings account with a high interest rate.
For example, Newcastle Permanent's Online Savings Account currently offers an introductory interest rate of 5%p.a. for the first three months for eligible new account customers.
After the 3-month intro rate period, standard variable rate interest will apply, which is currently 1% p.a.
The Newcastle Permanent Online Savings Account allows you to manage your funds online or via the Newcastle Permanent app. So it's easy to transfer money into it each pay cycle.
It's also worth looking for an account that has minimal fees and upkeep. After all, you don't want these to chip away at your savings.
Let's look at the Newcastle Permanent Online Savings Account again. There are no account-keeping fees, no minimum opening balance and no minimum monthly deposits required to earn interest.
To be eligible to receive any interest inclusive of the Introductory Bonus Rate or Standard Rate, all account owners must hold an Everyday Account, Home Loan or a Credit Facility with Newcastle Permanent.
Having funds stashed in a dedicated account can also help reduce temptation, and make saving easier overall.
2. Develop specific goals with timelines
Some people are very good at just stashing away money every pay period. But for most of us, it helps to have a specific savings goal – or goals – in mind.
This can help reduce the temptation to spend or to break your usual savings habits.
You don't need to have just one savings goal, either. You might have a long-term goal (e.g. buying a house) and multiple short-term goals (e.g. going on an overseas holiday, purchasing a car).
Putting a timeline in place can also be an effective way to ensure that you stay on track. Having a "due date" can make the goal seem more tangible and achievable, rather than an abstract idea.
And last – but certainly not least – savings goals and timelines don't necessarily have to be static, either. If you're hitting goals faster than you expected, great! And if you're finding it trickier than expected, you can always readjust your savings amounts or timelines, too.
3. Outline a clear budget
Good savings habits start with setting a budget. Although you don't necessarily need to track every expense down to the dollar, it's important to have a clear picture of where your money is going.
Not sure where to start? No problem – Newcastle Permanent has an example of a budget planner available on its website.
At its core, though, budgeting is about allocating your money more effectively. You'll spot areas where you could cut back on your spending and potentially contribute more to your savings in the process.
Additionally, it helps you develop better spending and saving strategies over time. By adhering to a budget, you can learn to make better financial decisions overall.
Of course, a budget should be a living document. Life circumstances evolve and change, and your budget should be the same. So if you feel your current budget isn't working for your lifestyle, it might be time to redo it.
4. Consolidate and pay off your debt
Having debt can make it very tricky to save. So if you're setting yourself savings goals for 2024 but still have debt, it may be worth considering whether you should get it paid off first.
If you have multiple debts in place, debt consolidation can sometimes be useful. You'll be able to make one repayment instead of multiple repayments, while also stabilising the interest rate you're paying on that debt.
Everyone's situation is different. But in some circumstances, this can help reduce your overall costs and allow you to get your debt paid off more quickly. In turn, this can let you start saving sooner, too.
Discover how you can start saving with Newcastle Permanent
Sponsored by Newcastle Permanent. Open an Online Savings Account with Newcastle Permanent and eligible new account customers will receive a special introductory rate of 5%p.a. for the first 3 months. Interest rate effective from 05/03/24. Eligibility criteria, T&Cs, fees & charges apply. General advice only - click for important info.
