Managing money isn’t always easy, especially when the little things, like your morning coffee or a quick takeaway dinner, start to add up. But the good news is, you may not need to give up life’s small pleasures to get ahead financially. With a few simple changes to the way you bank, spend, and save, you can cut unnecessary costs and boost your savings without feeling deprived. Here are five practical ways to save money while still enjoying the things you love.
1. Understand your bank account
Do you know if your bank account has a monthly fee? Some accounts do. So, if you have more than one bank account, you may be paying multiple fees unnecessarily. The easiest way to be sure is to check with your bank. It’s also an opportunity to find out if they have any other accounts that may better suit you.
Top tip: Other unexpected fees can occur when an account is overdrawn (when your balance goes below zero). Get into the routine of checking your account balance regularly to avoid additional fees.
2. Reduce transaction fees when you travel
Ready to sail the Greek Islands? Hit the ski slopes in New Zealand? Wherever you’re off to, spend time researching which account has the lowest fees for your travel destination and your requirements. Different banks and account types will incur different charges when making purchases or withdrawals overseas. Again, the easiest way to check is to contact your financial provider.
Top tip: Never assume that the debit or credit card you use in Australia will work overseas. The last thing you want is to be unable to access your funds while travelling, which, on top of being stressful, could cost you more in the long run.
3. Petrol and car use
If you drive a large car, petrol is likely to be more expensive. You may want to consider downsizing or investigate an electric or hybrid car. When it comes to finding the best petrol prices, take advantage of the available apps that share daily petrol prices to find the cheapest fuel in your area.
Top tip: If you’re struggling to keep petrol prices down, opt for alternate days on public transport (which is a bonus for the environment) or try carpooling.
4. Tune into your tapping
Tapping your debit or credit card to purchase products and services is fast and convenient. The issue is, however, that without physically holding onto and handing over money, it’s easy to lose track of what you’re spending. A good way to test how conscious you are of your expenditure is to track your expenses for a few days. You can use an app to monitor your spending or keep it simple and note your expenses on your phone. Jot down the amount, what the expense was for and the total amount for the day.
Top tip: Get into the habit of checking your bank account every few days. This can really help you to stay on top of your finances. With contactless payment becoming the norm, it can be easy to disconnect from your budget.
5. Start a high-interest savings account
One of the ways to save is to start a high-interest savings account. A high-interest account can earn a better return than an everyday transaction account. Saving when times are tough may seem impossible, but it doesn’t need to be. The amount you contribute to your savings account is entirely up to you and dependent on your circumstances. Even if you put small amounts in, you will benefit from compound interest.
Top tip: Check out all high-interest accounts before choosing yours. Don’t forget to read the fine print. Some accounts will have conditions like needing to deposit a certain amount to earn higher interest.
Do you know super is an important part of your finances?
While small savings can make a big difference day to day, it’s also important to look at the bigger picture, and that includes your super. Your super is your money for the future, and even small changes now can have a big impact on your retirement. To see how your super is tracking, try the NGS Super Calculator. It lets you explore how contributions, investment options, or career breaks could shape your retirement income and help you to take control of your future.
Try the NGS Super Calculator now.
This is general information only and does not take into account your objectives, financial situation or needs. Before acting on this information, or making an investment decision, consider whether it is appropriate to you and read our Product Disclosure Statements and Target Market Determinations. You should also consider obtaining financial, taxation and/or legal advice tailored to your personal circumstances before making a decision. This information has been issued by NGS Super Pty Ltd ABN 46 003 491 487 AFSL 233 154 as trustee of NGS Super ABN 73 549 180 515.
