Save $20 a week with an achievable savings goal | Dollar Saver tip #70
Save: $20 a week
Tip overview
The most magical thing about personal finance is the results you can achieve with compound interest and consistency.
Much like doing a small amount of exercise every day can do wonders for your health, making a consistent effort with your savings can help you build a rainy day fund with very little sacrifice.
Arianna Huffington says it best: make your goals too small to fail. So whether you can set aside $5 a week, or $20, or $200, or more – the key to success is to simply start with an achievable goal.
Did you know?
Finder's Consumer Sentiment Tracker reveals 74% of Australians are currently "somewhat" or "extremely" stressed about their savings. Setting aside some cash consistently can help you build a buffer against financial stress.
Putting aside $20 a week every week for 5 years is an achievable goal for most people.
Assuming a 5% interest rate – right now you can get even higher than that with some savings accounts – in half a decade, you'd have almost $6,000 set aside.
That's enough for an overseas holiday, a second-hand car or just peace of mind. If you're in a position to save $100 a week, you'd have almost $30,000 squirrelled away 5 years later."
