It is tempting to make an ambitious saving goal at the start of the year as part of our resolution – but when bills and unexpected expenses start to pile up, reality kicks in hard, and we abandon our goal.
Let’s make this year different by setting realistic goals we can efficiently achieve without stretching ourselves too thin. To help you secure your new 2023 saving goal, we’ve scoured the internet and found you our top five tips on building a solid saving plan for 2023.
Tip #1: A Realistic, Sustainable Start – 50|30|20
Consider a realistic and sustainable saving plan when you first start, such as the 50|30|20 saving rule – 50% of your net income goes to what you need, 30% to what you want and 20% towards your saving.
Think of wealth-building more as a marathon than a sprint – and yes, slow and steady will win the race.
Tip #2: Automate Your Saving!
Another effective way to secure your saving goal is to automate an amount from your paycheck to a dedicated saving account the moment you get paid.
Most online banking Apps provide an ‘automatic transfer’ feature where you can automate the transfer on the day you get paid.
Tip #3: Envision & Celebrate
Besides unexpected expenses, a lack of or a loss of motivation is the most common reason we fail our saving goal.
To motivate you, imagine the feeling when you achieve your goal – a new car, your next destination holiday, or the deposit for your and your family’s dream home.
To keep your motivation alive, set key milestones and celebrate when you hit them.
For example, if you plan on saving $100,000 for a down payment with your partner, celebrate and reward yourselves with a nice night out each time you’ve saved $10,000.
To help motivate you, Moneysmart.gov.au provides a saving calculator that indicates how much you can save with consistent effort: www.moneysmart.gov.au/savings-goals-calculator
Tip #4: The 52 Weeks Challenge
If you’ve just begun your saving journey, a nifty little trick can help save you nearly $1,400 a year.
You can start by saving $1 the first week and $2 the second week until you save $52 a week at the end of the challenge. Easy. All up, you’ll save $1,378.
Or you can do it the opposite way and count down, so you get the hard saving out of the form at the start of the year.
Tip #5: Speak to a Financial Advisor
If you are savvy with your money and already have considerable savings, consider speaking to a financial advisory professional to evaluate your current savings and investment strategy.
Accredited financial advisors can help you discover a new, sustainable way to explore new ways to build your wealth.
Secure the future you deserve with the help of our financial experts. Book a 30-minute obligation-free online consultation today.
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