Decide your savings goals - this will help you work out the best way to save to achieve them.
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Term
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Purpose of the loan
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Short-term (0 to 2 years)
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• Christmas and holidays
• An emergency fund for unexpected expenses
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Medium-term (2 to 5 years)
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• Pay off loans
• Put a deposit on a house
• Buy a car
• Pay for home improvements
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Long-term (5 years or longer)
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• Children’s education
• Your retirement
• Long-term financial security
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Initiate a savings plan
Many people find it very difficult to save. Any money they get they seem to spend. If this sounds like you, fear not. Below are some helpful tips to kick start your savings habit.
Even if you start by saving small amounts regularly, it will help you;
Manage your money better and be more prepared for the unexpected
Not have to rely on personal loans to buy the things you need in the future
Ease your financial stress
Clear your current debts
First things first, in order to start saving, the best thing to do is clear your existing debts from personal loans, credit cards, store cards and overdrafts. The rate of interest you will be paying on your debts is usually far higher than the rate you will receive on your savings.
Maximize your savings
Once your debts are under control you can then start to save. Most financial institutions will allow you to have your savings automatically debited from your account. Once you have gotten in to a savings habit it is worth considering which account will now offer you the best return on investment.
If you need assistance to clear your debts call us here at the Australian Lending Centre. We have a number of debt solutions available and will be happy to discuss these with you over a phone consultation. Call us today on 1300 138 188 to speak with a debt consultant, or alternatively fill out an express enquiry form on our website and we will get back to you shortly.