HOW TO GET YOUR SAVINGS BACK ON TRACK

With the cost of living going up by the day, managing your money can be tricky in the current environment. If you’re trying to save for a deposit or just trying to manage your mortgage repayments, it’s even more important to try and get on track with your savings. Here are a few ways to better manage your money.

Consolidate debts

If you’ve got a lot of high-interest debt, this is going to very quickly derail your savings plan and you could find yourself getting further and further behind. One of the best ways to manage a host of debts is to consolidate them, which effectively means rolling them all into one new loan that has a lower interest rate. This allows you to know exactly what your monthly repayments are going to be and hopefully, by having a lower rate, allow you to put those spare funds into paying down the debts faster.

Plan your budget

Most people that struggle with money generally don’t know where their money goes every month. The best way to tackle this situation is to get a hold of your bank and card statements and start tracking where you spend every dollar each month. It's a good idea to track the different areas of your life where you spend money, such as on groceries, eating out, events, travel or clothes or other items. If you can work potential monthly savings, then you can work towards sticking to a budget.

Work backwards

A clever way to save money is to make sure you don’t ever have easy access to it. If you know how much you’re trying to save, as soon as you get your pay cheque, immediately transfer the amount you want to save into your savings account. Then use a debit card to pay for your ongoing expenses, so you’re not adding to your debts with more high-interest debt.

Using an offset account

If you have a mortgage, there are tools you can use to stretch your money further. If you have an offset account and a credit card, it’s possible to pay all of your expenses on a credit card and park your cash in the offset account. At the end of the month, clear the credit card balance with the funds from your offset account. What you’re doing is making the most of the interest-free period on your credit cards, while earning interest on those funds in your offset account. This might seem like a small thing, but over time you can save a considerable amount of interest which can be used to pay down debt.

Would you like to discuss getting your savings back on track further? Contact Us.

Important note:

While every care has been taken in the preparation of this article, ADNA Financial Services makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Material contained in this news item is for general information only. It comes from a number of sources. Some of the content is provided by external writers. Any advice provided within the various articles is of a general nature only and should not be construed as providing advice on any of the topics discussed. Your needs and financial circumstances have not been taken into account. Your should always consult a qualified Financial Adviser for financial advice and a registered tax adviser should you have specific questions about tax.

© First published 01 September 2022