Treat your savings like a bill
Maximise the opportunity and capacity for building your savings and financial resilience. Treating your savings like a bill means instead of an optional thing on top of your everyday expenses, it becomes something you see as a necessary expense that comes out before any discretionary spending like buying takeaway or having your nails done. This means you’re more likely to make it happen!
23.5% of people struggling with their finances know they run short of money because they over-spend.*
A great way to set yourself up for success here and achieving your savings goal is to set up a direct debit each pay cycle from your bank account into your savings account. This means it goes in there without you needing to think about it, and you don’t see the money as an available amount in your transaction account when you check the balance.
Setting up a direct debit for your savings is a way you can trick yourself into ‘living without it’ and of course depending on how much you’re wanting to save, you may soon begin to live without it.
How much do you need to save?
This all depends on what your savings goals and living expenses are. Something that builds your financial resilience levels is setting aside money for lifes emergencies, such as a loss of income for 3 - 6 months.
*Source: ANZ Financial wellbeing - spotlight on Australian women - March 2023
This article provides general advice only. It does not take into account your objectives, financial situation or needs. Before acting on any information provided, you should consider the appropriateness of the information and the nature of the financial product in regards to your objectives, financial situation and needs. We recommend discussing your personal situation with a financial professional.
Article by:
TEAM TMC
Financial Wellbeing Coaches and Mortgage Brokers
The Money Collective
