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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).
RaboDirect High Interest Savings Account
special rate*
3.50% (for $0 to $250,000)
Bonus rate for the first 4 months from account opening
standard interest rate
2.55%(for $0 to $250,000)
account fee per month
$0.00
Go to site
More info
Special rate conditions
Bonus rate for the first 4 months from account opening
Access
Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account
ING DIRECT Savings Maximiser
special rate*
3.50% (for $0 to $100,000)
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
standard interest rate
2.25%(for $0 and over)
account fee per month
$0.00
Go to site
More info
Special rate conditions
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
Access
Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account
St.George Maxi Saver
special rate*
3.20% (for $0 and over)
bonus rate for first 3 months
standard interest rate
1.50%(for $0 and over)
account fee per month
$0.00
Go to site
More info
Special rate conditions
Bonus rate for the first 3 months from account opening
Access
Branch access, Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account with this provider
ANZ Online Saver
special rate*
3.10% (for $0 and over)
standard interest rate
1.80%(for $0 and over)
account fee per month
$0.00
Go to site
More info
Special rate conditions
Bonus rate for the first 3 months from account opening
Access
BPay, Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must be linked to ANZ deposit account.
ANZ Progress Saver
special rate*
2.51% (for $0 and over)
standard interest rate
0.01%(for $0 and over)
account fee per month
$0.00
Go to site
More info
Special rate conditions
Minimum deposit of $10 and no withdrawals in the month
Access
Branch access, Phone banking, Internet banking
Minimum balance
$10.00
RaboDirect High Interest Savings Account
special rate
3.50% (for $0 to $250,000)
Bonus rate for the first 4 months from account opening
conditions
Bonus rate for the first 4 months from account opening
Go to site
More info
Standard interest rate
2.55%(for $0 to $250,000)
Account fee per month
$0.00
Access
Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account
ING DIRECT Savings Maximiser
special rate
3.50% (for $0 to $100,000)
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
conditions
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
Go to site
More info
Standard interest rate
2.25%(for $0 and over)
Account fee per month
$0.00
Access
Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account
St.George Maxi Saver
special rate
3.20% (for $0 and over)
bonus rate for first 3 months
conditions
Bonus rate for the first 3 months from account opening
Go to site
More info
Standard interest rate
1.50%(for $0 and over)
Account fee per month
$0.00
Access
Branch access, Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account with this provider
RaboDirect High Interest Savings Account
standard interest rate
2.55%(for $0 to $250,000)
account fee per month
$0.00
minimum balance
$0.00
Go to site
More info
Special rate
3.50% (for $0 to $250,000)
Special rate conditions
Bonus rate for the first 4 months from account opening
Access
Internet banking
Other restrictions
Must link to a transaction account
ING DIRECT Savings Maximiser
standard interest rate
2.25%(for $0 and over)
account fee per month
$0.00
minimum balance
$0.00
Go to site
More info
Special rate
3.50% (for $0 to $100,000)
Special rate conditions
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
Access
Phone banking, Internet banking
Other restrictions
Must link to a transaction account
Bankwest Hero Saver
standard interest rate
0.01%(for $0 to $5,000,000)
account fee per month
$0.00
minimum balance
$0.00
Go to site
More info
Special rate
3.15% (for $0 to $250,000)
Special rate conditions
Minimum deposit of $200 excluding interest and no withdrawals in the month
Access
Phone banking, Internet banking
RaboDirect High Interest Savings Account
special rate*
3.50% (for $0 to $250,000)
Bonus rate for the first 4 months from account opening
standard interest rate
2.55%(for $0 to $250,000)
account fee per month
$0.00
Go to site
More info
Special rate conditions
Bonus rate for the first 4 months from account opening
Access
Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account
ING DIRECT Savings Maximiser
special rate*
3.50% (for $0 to $100,000)
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
standard interest rate
2.25%(for $0 and over)
account fee per month
$0.00
Go to site
More info
Special rate conditions
For customers who also have an Orange Everyday and deposit their pay of $1,000+ each month.
Access
Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must link to a transaction account
Bankwest Hero Saver
special rate*
3.15% (for $0 to $250,000)
Minimum deposit of $200 excluding interest and no withdrawals in the month
standard interest rate
0.01%(for $0 to $5,000,000)
account fee per month
$0.00
Go to site
More info
Special rate conditions
Minimum deposit of $200 excluding interest and no withdrawals in the month
Access
Phone banking, Internet banking
Minimum balance
$0.00
Westpac Reward Saver (under 12)
special rate
2.50% (for $0 and over)
minimum one deposit, no withdrawals
standard interest rate
0.01%(for $0 and over)
ages
Under 12
Go to site
More info
conditions
Minimum one deposit and no withdrawals in the month
account fee
$0.00
minimum balance
$0.00
access
Branch access
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.