Struggle to save regularly? These simple tips will set you on the right path.
by Angus Kidman
Savings failure is real. The average Australian saves just $764 a month, according to Finder research, and 18% of us don't save monthly at all.
Frankly, that's not good enough to ensure a healthy financial future.
Do you need help getting your savings and investment habits fired up (or want to help a friend or family member get started)? Here are three easy tips from our experts.
Tip 1: Round up your savings – automatically!
Many banks offer "round up" features for saving.
Every time you spend money using your debit card, the transaction is rounded up to the nearest dollar and that extra amount is added to your savings.
Bought a coffee for $4.50? $5 comes out of your debit account and 50 cents of that gets transferred from your daily account to your savings.
The amounts might seem small, but they can really add up over time.”
Learn more about rounding up and other savings encouragement features in our full Finder guide.
Tip 2: Earn as much interest as you can on savings
Getting 2% is still better than getting 1%.
We'll be blunt – interest rates for savings accounts are not very impressive in 2021.
Blame the official cash rate, which has also been flatlining for half a decade.
But that doesn't mean comparing isn't worthwhile.
Even getting 2% rather than 1% will earn the average Aussie an extra $1,319 in interest over 3 years. There's no point keeping money in your transaction account, where it earns nothing.”
You can use the Finder app to compare your existing account and find higher rates.
Tip 3: Try micro-investing apps
"App-based micro-investing helps you build an investment habit."
Don't have enough cash for full-blown share trading?
Micro-investing platforms let you invest tiny amounts ($5 or less) in shares or index funds.
Popular choices include Spaceship Voyager and Raiz Invest.
App-based micro-investing helps you build an investment habit. Once your portfolio gets larger, managing it yourself may prove cheaper. But that's the future. Micro-investing is a great first move. ”
The big picture
Building wealth requires many steps, but a savings habit is critical.
Building wealth requires many steps, but a savings habit is critical.
Other key steps? Reduce existing debt (credit card junkies should look at 0% balance transfer credit cards) and build a long-term budget.
Let's get wealthy!