Simple savings tips
Where does all your money go?
A recent survey found that the average Australian is not sure where a third of their spending money goes each week. The survey showed that Australians spend around $176 in cash per week, and of that $59 could not be accounted for. The survey attempted to discover where this mystery spending occurred and found that danger times were:
- Buying food and groceries
- A night out socialising
- Shopping for non-essentials
- Snacking
- Dining out
While strict budgets and keeping track of every dollar might be unrealistic, there are some simple things you can do to avoid mystery spending:
- Make a list before going shopping and stick to it
- Invite friends around for a meal instead of going out
- Bottle your own water
- Buy snacks in bulk and take them to work
- Borrow books from the library
Ensuring that your saving account is earning a respectable interest rate is another good way to boost your wealth. Many people have money tied up in one of the big bank's transactional accounts, despite the fact the majority of these accounts pay little to no interest. Research by infochoice.com.au showed that Australians lost more than 1 billion worth in interest over a six month period due to leaving money in these low interest accounts.
If you maintain a high balance within your everyday transactional account you could also be missing out on additional savings. This extra money could be invested in a term deposit with a higher interest rate.
There are lots of ways your credit union can help you maximise your savings. To learn more about managing your finances have a look at the financial tips section on the credit union’s website, or alternatively give the LCU a call.
