Mar

how to give your savings plan a quick boost

Building savings can be a slow and steady game. You set your savings goals, decide how much you want to put towards your savings each pay day and set your savings on autopilot by automatically deducting a set amount. And then you wait.

However, on top of the usual automated savings plan, there are a few things that you can do to give your savings account (and your motivation) a quick boost.

1. Change to a high interest savings account

Maximise your savings by getting the highest return possible. While it may not seem like much, a higher interest rate will compound, giving your overall savings plan a boost over time.

2. Deposit your savings

You’ve made an effort all month to shave $40 off your electricity bill. Ignore the saving and ‘pay’ the full amount by paying what’s owing to the electricity company and transferring the $40 straight into your savings account – you would have spent that $40 on the bill anyway (if you hadn’t made the savings), so you won’t be missing the money by putting it into your savings account.

In fact, when it comes to boosting your savings, every time you save some money or ‘beat your budget’ get into the habit of depositing the savings into your savings account rather than spending the savings on something else. Reducing the budget and spending less will only boost your savings if you actually put the spare cash towards your savings account.

3. Sell your extra stuff

We all know this one. eBay, the local classified, garage sales, car boot sales… we all have potential income just lying around the house waiting to be converted to cash. And by selling the extra stuff that you no longer need, not only do you get extra cash, the item goes to good use rather than being wasted sitting unused in the cupboard.

4. Do some short term overtime / casual work

If you need to boost your savings in a hurry, picking up some extra short term work, be it overtime or extra casual work can be a way of boosting your savings when tightening the budget isn’t an option.

Alternatively, converting your hobby into a side income stream can also give you the extra cash you need to boost your savings.

5. Keep a change jar

It is surprising just how quickly spare change can add up. Make a habit of emptying your purse every night into a change jar and then depositing the change on a regular basis.

Not only does collecting your change add up, not carrying small amounts of cash and change can help stop impulse buying.

6. Save pay rises

A pay rise is always welcome, but if you’ve survived this far on the income you’ve been earning, you won’t miss the extra cash if you deposit it straight into your savings account. Using your pay rise to increase your regular savings plan will have a dramatic effect on your savings balance by the end of the year.

7. Put bonuses, windfalls, tax returns to your savings

Again, the same principle applies. While these little bonuses are nice, they can also provide a quick boost to your savings. As well as the above, you could also automatically save leave loading and overtime bonuses.

8. Convert your credit card repayments to savings once you’re debt free.

If you’ve been making regular repayments on a credit card, once you’ve paid down the balance, continue to make the automatic payments to your savings account instead.

While it’s a good idea to have a consistent plan in place to grow your savings, every little extra bit counts to quickly giving your savings (and your motivation) a boost.