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4 ways to help fill your piggy bank faster

Saving money has some very distinct similarities with
going on a diet. It can affect your lifestyle, as you
consume less of what you love in order to achieve a goal
that often takes forever before you see any results.

pic 3The recent Suncorp Bank Australians’ Saving Habits
Report found that many people in our nation are in fact
already putting significant amounts of money aside,
particularly the younger generation. Their main
motivation? Property investment.
“On average, Australians aged 25 to 34 are saving $533
per month (12.7 per cent of their personal income). This
is $100 more than the national average (11.5 per cent or
$427),” Suncorp Bank Regional Manager Monique
Reynolds said.
Just like discovering new exciting recipes from Jamie
Oliver that fit your brutal diet regime, there are many
ways to help you save your money faster. Here’s just a
few to take on board before seeing your mortgage lender.

 

1. Focus on the cost of your time
The saying ‘time is money’ rings true when it comes to
saving for home loans. The Australian Bureau of
Statistics (ABS) found that the average household in our
country spends around $1,200 a week on goods and
services. However, before you buy, say, that new pair of
shoes, think about its worth in time rather than the price
tag.
For example, the shoes cost $200 and you earn $20 an
hour, therefore they will cost you ten hours of work – is
that really worth it?

2. Trick yourself
When it comes to the devil and the angel with a shoulder
each, it’s normally the former that eats into your savings
account. However, there are ways around this, including:
• Arrange an automatic payment into a savings
account that coincides with your pay day – once you
adjust you won’t even realise you’re putting it aside
• To reduce the chance of transferring money back to
your spending account in moments of weakness, make
your savings account inaccessible by electronic means
• They all taste pretty similar, so go generic with food
brands, as the Suncorp Bank survey found that
Australians spend a whopping 17.5 per cent of their
personal income on food

3. Get smarter with household use
According to the ABS, for the year of 2014 the average
family household in our nation spent more than $50 on
energy per week. This results to around $2,600 a year,
and is money that can be easily saved with some slight
tweaks.
The Department of Industry, Innovation and Science
recommends reducing your reliance on heating and
cooling systems, as these generally make up for about 40
per cent of your power bill. Instead, wrap up with a few
blankets and a friend, or snuggle an ice pack in the
warmer months.
Reducing your energy use will mean you have more
money left over once your bills have been paid.

4. Or you could…
“The saving strength of younger Australians could also be
attributed to the fact that people in this age bracket are
increasingly staying at home for longer, with the most
current data indicating one in four adults (20 to 34 years
old) still live at home,” said Ms Reynolds.
While you may see it as a last resort, moving back in with
your folks is actually a terrific way to save money, not to
mention being able to take advantage of your mum’s
famous meatballs, lasagne and Sunday roast (although
these dishes may not be the best for your diet).

Written by

Stephen Bonfield, the Managing Director, previously worked for one of Australia’s major home loan companies as an independent mortgage broker. Steve used this experience to set up his own mortgage broking company - a company that places customer needs at the forefront.

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