We all have a savings goal that we would like to reach – whether you’re saving to buy a house, upgrade your car or go on holiday.
Sticking to a budget can be difficult – especially during times where many have lost their job or seen a decrease in household income due to Covid-19.
1. The 50-30-20 strategy
The 50-30-20 budgeting strategy will see you hit your savings goal in no time! Split your after-tax income into three categories – must-haves, wants and savings.
Put aside half of your after-tax income into your must-haves (this includes rent, bills, groceries and insurance), 30 per cent towards your wants (eating out, entertainment, fashion etc.) and 20 per cent
towards savings.
Any leftovers at the end of the month in must-haves or wants categories can go straight into your savings!
2. Set up a bill calendar
Outline your bills in a calendar or spreadsheet and make note of when each bill is due.
3. Place a lock on your savings account
It can be an easy process to open up your banking app and transfer money out of your savings account and into your spending account (we have all been there).
Speak to your bank about placing a lock on your account so that the temptation and ability to easily dip into your savings is no longer at the click of a button.
4. Remove temptations
Calling all online shoppers! Are you someone who likes to online shop during your lunch break or after the kids go to bed? Take some mental notes next time you’re heading online for a shopping spree and look at whether it’s time to replace “phone time” with an hour of Netflix!
5. Impulse buys aren’t your friend!
Can’t resist a bargain? Although it might seem like you’re saving money doing it, you’re still spending.
A good rule is to start implementing a waiting system. Take a step back, wait 24-hours (or even just an hour) and if you still want it by the end of that period, buy it. But try to stay below your 30 per cent spending threshold!
