Thursday, January 30, 2014

How to maximise your savings

I set a goal to save another $70,000 for a house deposit by the end of the year. This is a massive goal, but I know I can do it. My kids are on board and it's happening! So far I have managed to save $3,000 in the last 2.5 weeks. It's a good start, but I have a long way to go.

So how am I maximising my savings?
1.) High interest saving account - my very first step is to shop around and get an account with the highest interest. While the amount of interest I am earning on my small amount of savings is not that much right now, every little bit helps.
2.) Transfer everything - I have money coming in from various sources and before it even hits my account it is allocated. Whatever is allocated to savings gets transferred immediately and is not to be touched for anything! Any time I save money on planned purchases, I transfer the money. Any interest earned in other accounts gets transferred. I am savings very cent possible.
3.) Reassessing and restructuring my business - I have spent a chunk of time looking at how I run my business, changes to make it more efficient and more profitable. Some changes have been harder than others, but those changes have made a $1,500 difference in the past 2.5 weeks.
4.) Use what I have - I did a pantry clean out and just ate up all the random things I have in there instead of buying whatever I felt like. My kids were not here, so no complaints from them. I went through my beauty supplies to use them up too and stop myself from buying things I don't need.
5.) Talk to my kids - When I set this goal, I set it for my daughters. They are my motivation, so they were included in the decision. We decided as a family to save for a house and we discuss our finances and what we need to do. Having them on board with saving for big things makes life much easier and they feel good because they are involved in big family decisions.
6.) Make do! - Instead of getting new lunch boxes and school bags, we are using the ones from last year. Any time we want something I look around the house to see if we have anything we can use for it instead. Before making any purchases I ask myself if I can make do for now. It is less than a year for us to have a house, it's not that long to go without.
7.) Use coupons - Australia doesn't have as many coupon options as the USA, but there are still ways to earn coupons and we still get some in the mail. FlyBuys and Every Day Rewards are two which provide numerous discounts an coupons.

There are so many things you can do to make and save money. Any time you save money on anything, transfer that to savings. Continually check you are getting the best interest rate and never withdraw from savings. If an emergency pops up, try to find a way to work around it.

How do you maximise savings?

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