The Ultimate Guide to Saving Money
Saving money sounds like a simple concept - just spend less than you earn - but the reality is a little different.
Even with the best of intentions, it’s easy to open your wallet a few days before payday to find that the only thing left inside is a wad of fading receipts.
Successfully saving money requires planning, discipline and a fair amount of sacrifice, but the rewards will be more than worth it.
Here’s our step-by-step guide on how to do it.
The Only Six-Step Guide to Saving
You’ll Ever Need
Pay down bad debts first
- It’s a simple equation. Bad debts like credit cards charge you interest at around 17% – 20% per year. Savings accounts pay you interest at around 4% per year.
- So if you try to start saving when you’re sitting under a mountain of bad debt, then your money is actually going backwards.
- If you’re struggling to get on top of your debts, check out MoneySaverHQ’s guide to managing debt for tips and tricks on how to beat them.
Set savings goals
- Having something to save for will give you the motivation to stay on track with your savings and avoid the temptation to blow it all on impulse purchases. So sit down and work out what you’re saving for, why you need it, and when you need it by.
- Once you can answer these questions, it’s simple to work out exactly how much you’ll need to save each week in order to get there.
Build a budget
- A budget is the most important part of a successful savings strategy.
- Having an accurate picture of your income and expenses will help you work out how much you can realistically save each week, areas where you are spending too much money, and identify sacrifices you could make to increase savings.
- Whether you use old-fashioned pen and paper, a spreadsheet program like Microsoft Excel, or one of the many budgeting apps available for your phone or tablet, the most important thing is to get it done. Otherwise you’re just flying blind.
Open a high interest savings account
- A high interest savings account that’s not linked to a regular credit or debit card ensures your money gets the best possible risk-free return while making it harder for you to succumb to the temptation to make impulse purchases with your savings.
- Compare savings accounts here to find one that best suits your circumstances.
- When choosing an account, always make sure to read through the terms and conditions carefully. Some interest rates expire after a certain period of time, for example, and revert back to a lower rate, and most accounts will require you to satisfy certain conditions in order to receive the stated rate of interest (for example, depositing at least $1,000 per month).
- Easy set up, online and Mobile Banking App facilities
- No fees, no minimum balance, no minimum monthly deposit and no minimum term
- The current 4 month introductory variable rate is a great way to kick start your savings
Bonus rate for the first 4 months from account opening
- No ING DIRECT fees
- You could get a great variable rate every month, no matter how many times you withdraw
- Anytime, anywhere banking with mobile app and 24/7 Australian call centre
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
- 24/7 access online savings account
- No monthly service fees
- No minimum monthly balance or deposit required
bonus rate for first 3 months
- Exclusive online bonus interest offer for 3 months. Limited time only
- No minimum balance
- Interest calculated daily and paid monthly
- Earn bonus interest when no withdrawals in the month
- No monthly account fee
- Automated transfers from your everyday account to your savings account each month
- Easy set up, online and Mobile Banking App facilities
- No fees, no minimum balance, no minimum monthly deposit and no minimum term
- The current 4 month introductory variable rate is a great way to kick start your savings
Bonus rate for the first 4 months from account opening
- No ING DIRECT fees
- You could get a great variable rate every month, no matter how many times you withdraw
- Anytime, anywhere banking with mobile app and 24/7 Australian call centre
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
- 24/7 access online savings account
- No monthly service fees
- No minimum monthly balance or deposit required
bonus rate for first 3 months
- Easy set up, online and Mobile Banking App facilities
- No fees, no minimum balance, no minimum monthly deposit and no minimum term
- The current 4 month introductory variable rate is a great way to kick start your savings
- No ING DIRECT fees
- You could get a great variable rate every month, no matter how many times you withdraw
- Anytime, anywhere banking with mobile app and 24/7 Australian call centre
- No account keeping fees
- No transaction fees
- 100% secure application process
- Easy set up, online and Mobile Banking App facilities
- No fees, no minimum balance, no minimum monthly deposit and no minimum term
- The current 4 month introductory variable rate is a great way to kick start your savings
Bonus rate for the first 4 months from account opening
- No ING DIRECT fees
- You could get a great variable rate every month, no matter how many times you withdraw
- Anytime, anywhere banking with mobile app and 24/7 Australian call centre
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
- No account keeping fees
- No transaction fees
- 100% secure application process
Minimum deposit of $200 excluding interest and no withdrawals in the month
- Earn bonus interest each month you deposit and don't withdraw
- No monthly fees
- Free withdrawals (when a withdrawal is made the variable bonus rate won't apply)
minimum one deposit, no withdrawals
Set up an automatic savings plan.
- The easiest way to do this is to organise a direct debit from your transaction account to your savings every time you get paid. That way, you always pay your savings first and won’t be tempted to overspend.
- MoneySaver HQ offers a great savings calculator that lets you see how quickly your money will build up once you start making regular contributions to savings.
Set aside an emergency fund.
- Life doesn’t always go to plan, so before you start saving up for those ‘nice to haves’, it’s worth building up an emergency fund to deal with any unexpected expenses.
- You’ll thank yourself next time the washing machine breaks down or someone side swipes your car and drives away.