New year, new savings goals
With the festive season well and truly upon us and the new year just around the corner, many Australians are looking to their hip pockets.
There’s no doubt that the end of the year can bring about financial stressors, and with the continuing interest rate increases we’ve seen, it’s leading many to think about how they can focus on their financial health in the new year.
If you’re part of this cohort, or just looking for additional ways to improve your financial situation, here are a few tips and tools to help get you started.
Start with a goal in mind
Determine your goal, for example, are you saving for a holiday, a home loan, emergency fund or new car? Or are you trying to get on-top of debt or put more money into your superannuation? Whatever your motivation, it’s a good idea to keep this front of mind as it will help you remain on track.
Once you’ve settled on your goal, write it down. It might seem simple, but having your goal visible in your home office – or even on the fridge – will serve as a small reminder and spark that motivation to stay on course.
Review your spending
In order to save, it’s crucial to pay attention to your outgoings so you can understand exactly what you’re spending – and where. This exercise can help you to identify areas you can cut back on, or cut out entirely. Start by taking a look at a typical month and see what opportunities present themselves, you can then use an online tool, app or spreadsheet to help you take the next step.
Budgeting and saving with Shape
There are a number of tools and apps that can help when it comes to budgeting and saving. At Shape we know it’s hard to go past a trusted excel spreadsheet, so we have developed one that is simple to use and helps our clients keep on top of their finances.
We also offer our clients access to the Moneysoft program. This tool allows you to sync your accounts, so you’ll have a holistic view of your finances. It features budgeting tools, tracks your net worth, lets you set goals, view and categorise transactions, schedule payments, and even alerts you if you have gone over budget, making it easier for you to keep an eye on your finances as well as identify additional opportunities to save.
Budgeting and saving online
Moneysmart.gov.au is a Federal Government website which focuses on the financial health of Australians. They have a number of calculators and resources available, including their savings calculator. This online calculator enables you to enter the total amount you would like to save, along with the time period you hope to save it within, and then breaks it down into a monthly figure.
It might sound fairly straightforward, but breaking down your savings target into a monthly figure is a simple way you can ensure your plan is realistic and manageable month on month.
Another option is the Frollo app. It allows you to sync your bank accounts, home loan, and superannuation and provides a comprehensive overview of your finances in one place. You can set-up budgets, set savings goals, and track your progress. It also provides you with customised insights, and automatically categorises your spending.
It's important to remember that these tools are just one component of setting and reaching your savings goal. Our team here at Shape are available to assist you no matter your life stage or financial situation. Please don’t hesitate to reach out to our team today.