EVERY year is “the year”, when we think we’ll be swept up by an exotic summer holiday, driving away in that new car from the dealership we jog by, or finally getting the keys to the bigger home of our dreams. However, “the year” always seems to become “next year” when our savings accounts tell us the grim truth, so here’s how to make this year, “your year”.
About one in three women plan to make a major purchase in the coming months, but one quarter of those women will delay this purchase for money reasons, according to debt research data from Dun & Bradstreet. It’s no surprise many of us spend more time thinking about big-ticket spends throughout the year than we do planning how to save for it.
You can probably name three big things you wish you could buy off the top of your head. But if you were asked how you would save for each of these items, would you give the same answer for each?
Take a car for example. If your goal is $20,000, think about ways to save on fuel efficiency, costs of repairs and your insurance. You can also tailor your savings plan by reducing your spend on petrol and maintenance, and putting the spare cash away to boost your savings while achieving healthier spending habits.
In 12 months, saving $400 a week will get you over the line with a nice interest return of almost $700.
Saving for a home will need the same level of focus and discipline, but you can consider incentives such as the First Home Saver Account and the First Home Owner Grant to skyrocket your savings potential.
For example, saving for a $30,000 deposit over four years with a First Home Saver Account at 5.5 percent by ME Bank will require you to save $525 per month, and you’ll be rewarded with almost $4800 in interest and government contributions.
It’s also important to remember savings as anti-debt. With only one in five women paying for their big purchase in interest-free terms, improving the way you spend (not just how much) can also help make sure that when you have ticked off your savings goal, you won’t be crawling in debt from your other purchases in the new year.
Michelle Hutchison is a consumer advocate at RateCity. RateCity is a privately owned company in partnership with ninemsn, publisher of the Australian Women’s Weekly website. The above information is general only and does not take into account your objectives, financial situation or needs.
Your say: Do you have any big purchases planned? Do you have any saving secrets? Email us on [email protected]
