Creating a financial plan is essential, and this involves determining what your financial goals are for the future. From this point, each goal can be categorized into specific and realistic time frames. The next step is to determine feasible strategies to put your plan into action. Below are 5 easy and effective save money options that can ensure money is saved for the goals of your future.
- Automatic deposits – Each time payday rolls around, commit to setting aside a specified amount that can be deposited into a savings account. Once money reaches the hands of many people, it is often spent before it can ever make it to the bank. For this reason, you may find depositing money into your savings account is much easier when you sign up to have automatic deposits made directly from your check. With this option, you never have to worry about making it to the bank to deposit the money yourself.
- Decrease expenses – Regardless of how small a person’s budget may be, there is usually always a way to decrease expenses. A few that can often be cut include entertainment, housing and utilities, shopping, food costs, and transportation. Each of these can frequently be decreased in ways most people do not even realize. For instance, carpooling or even riding a bicycle can save tremendously on fuel costs; completely doing away with those small purchases that only cost a few bucks and seem harmless can often add up to twenty dollars or more over the course of a month; if you have a mobile phone, have your home telephone disconnected; investigating available options for refinancing your mortgage loan can also save considerable amounts of money
- Save money by investing – The earning potential for money that is placed in assets such as mutual funds, bonds, and stocks is significant. There is a wide variety of options for investing your money to earn a profit, and a few of these include specific products, the government, or even in a particular company. There are numerous investment options that are posted on sites all over the Interne.
- Purchase a health insurance policy – A medical emergency that is unexpected can quickly cause a major financial setback for those that have not purchased a health insurance policy. This can be especially true when a lay-off at work occurs. If your place of employment does not offer health insurance, it can benefit goals for your future in saving money to check into low-cost premiums.
- Invest in a retirement plan – There are a large number of companies, organizations, and employers that provide their employees with the benefit of being able to take part in a retirement plan. Even if you only plan to place small amounts of money into a retirement fund, it will be an investment that you will find to be well worth it in the long run.
A benefit of the government that is available to Australians is superannuation. This is comparable to the 401K offered in the United States. Any person in Australia that has plans of making wise super money decisions should invest in SMSF, otherwise known as Self-Managed Super Funds. UBank currently have the best self managed super fund options for Aussies.