With Aussies aiming for a savings safety-net of $10,000 to be financially secure, Neil Stedman provides some saving tips.
New research released by St George Bank today has revealed the majority of Australians are more conscious savers than they were five years ago, increasing their focus on building financial security and planning for the future.
The survey of 1000 Australians showed two-thirds (66 per cent) aim to have more than $10,000 easily accessible in their bank account to feel financially secure. One in five (20 per cent) aim to have more than $3000 in savings.
The GFC was a catalyst for many Australians to change their savings habits. Since this time, we’ve seen an increased focus on people paying down their debts and adding to their savings pool. At St.George more than half of our customers are ahead on their mortgage repayments while also maintaining good savings, which is a really positive position to be in.
The main reason cited for adding to savings is:
- To increase financial security (57 per cent)
- Save for retirement (29 per cent)
- Save for a house purchase (25 per cent).
To help Australians reach their savings safety-net goal, here’s a list of top tips to set you on your way.
Set a budget
This is the most important step for anyone wanting to save money and improve their financial position. Ensure your budget includes all types of income and expenses so nothing crops up unexpectedly.
Set achievable goals
Savings goals need to be realistic. A general rule of thumb is to save three months’ worth of pay but evaluate against your personal circumstances.
Open a savings account
Make sure you have a dedicated account for savings rather than trying to save money in your everyday account where there is a higher temptation to spend.
Reduce your debt
When possible, try to make extra repayments on your loans.
Call 133 763 to discover how St.George can help you build your business.