Top 5 Tips for Increasing Your Savings
Top 5 tips for increasing your savings… without changing your lifestyle
I see a lot of lists about increasing your savings and the majority of them basically tell you to spend less on your lifestyle and going out.
We have put together a list that doesn’t influence your lifestyle, but may help you increase your monthly savings;
1. Maximise your tax returns – This is the best area to increase your savings as you are effectively clawing back money you have already paid out. Get your tax professionally done to ensure you maximise your deductions. You should also do some forward planning and look at your tax situation for the coming year so you can strategically plan your finances to maximise your return.
2. Move your Income Protection and Life Insurance inside super – If you currently pay your personal insurances outside of super, you can look at the option of replacing them within your superannuation fund. This means your insurances are effectively funded with your super contributions.
3. Consolidate debt/Re-finance your loans – If you have credit cards, personal loans or even car loans you can look at the option of consolidating your debt. This may reduce your interest payments which can free up some additional money to repay the loan. In addition, you should look to see if you can get a better interest rate on your loan. Although interest rates aren’t the only factor when considering a loan, you can look at the option of possibly fixing to free up some cash flow.
4. Setup Direct Debits – This tip won’t drastically change your cash flow but every little bit helps. Every time you miss a bill or credit card repayment you get hit with penalty interest or late fees. Over a year, if you continually miss payments this amount can become material.
5. Maximise the use of your savings – Once again this strategy takes some time but once you get momentum it can significantly add to your savings. This could be as simple as putting your hard earned money into a high interest account or investing it in the share market into high dividend yielding stocks with strong franking credits. This additional income you earn can be re-invested to create the compounding effect.
The key with increasing your savings is that there isn’t one magic solution. It is about making multiple changes that individually don’t make too much difference, but when combined together it can make a significant change your savings.