How Australians save money
Ever wonder how some people stay on top of their finances? It’s all to do with how you manage your money.
Here’s how other Aussies are saving (and spending) towards their goals, courtesy of ASIC’s Moneysmart.gov.au.
How Aussies saves money
According to statistics from MoneySmart in 2014, just over half (57%) of Australians invest some of their income into savings. This leaves 43% of Aussies who don’t save at all, either from not knowing the benefits of saving, or from not having the cash to spare.
That said, some non-savers may still be putting something away — for example, making extra contributions to their super, or investing in real estate as a form of long-term savings. Some non-savers might also instead be working to reduce their debts with extra repayments on their mortgage or other loans.
Don’t worry if you’re only putting pennies aside. You’re not alone — people who only manage to save a little far outweigh those who manage to save with ease (41% vs 16%).
What are we saving for?
With our workforce still counted among the hardest working in the world, it’s no wonder that 47% of savers are saving towards a holiday.
For those who are more homeward focused, the Great Australian Dream is still alive and well — nearly half (47%) of our savers are saving for a home, with most (36%) looking to buy one of their own and many (14%) intending to renovate the home they already have.
Other goals we know of:
- 47% are saving for the future
- 33% are saving in an emergency fund
- 13% are saving for a car
- 10% are saving for their education
- 8% are saving for furniture or appliances
- 5% are saving for a wedding
- 4% are saving for new technology (computer or other device)
MoneySmart classifies Aussie savers into four categories:
Savers with goals, but no real plans for achieving them. 11% of savers fall into this group, and are equally likely to be female or male.
Hit & Miss
These savers are great at planning for their goals, but they don’t always stick to it. 24% approach their savings this way, and are slightly more likely to be female than male.
Slow & Steady
Savers who achieve their goals by being regular and consistent with their savings, even if they only save a little at a time. 37% of savers fall into this category, and are more likely to be female than male.
Fast & Determined
Once these savers decide on which goal to tackle next, they get down to business and save aggressively. 28% of savers fall into this camp, and are more likely to be male than female.
How to save successfully
Saving money is simple in theory, but for most people, the conflicting priorities of life can sidetrack even the most determined saver. Here’s how to maximise your chances of success with a little planning and discipline:
Know how much money you need
Saving without limits may seem like a good idea when you’re overwhelmed by a goal, but when you have a target amount in mind, you’ll be able to track how much closer you get every time you put money away — it works wonders for your motivation too. There’s a reason why 78% of successful savers use this technique, with 73% also reviewing their progress on a regular basis.
Have a clear savings plan
75% of successful savers recommend this approach, as knowing how much you’ll put away and how regularly you’ll deposit gives you reliable factors to work around when you plan your day-to-day spending. 72% of successful savers also suggest working with a specific time frame, giving you something to look forward to.
Talk about your goals with family and friends
When you make your goals public, you not only reinforce their significance in your life, you also let people around you know how they can support you. They might know of easier ways you can achieve your goals, challenge you to work harder or smarter, contribute financially towards your target, or even join you on your journey, increasing your chances of success even more.
Clear your debts as quickly as possible
Start by paying off your credit cards and any other high-interest loans. Consider consolidating multiple debts with a single low-rate loan or by redrawing on your mortgage. With less money going out each month, you’ll have more funds to put towards a meaningful future.
The majority of our customers use our loans to consolidate debts, especially credit card debts. Our low rates can make a big savings on the total repayment amount, combined with fixed monthly repayments which make it easier to manage your money.