ME: Saving slip-ups that cost us dearly

Tuesday 31 Oct 2017

We share common gaffes that could be holding you back from growing savings.

If you’re struggling to find spare cash to grow savings, chances are you’re falling prey to a few money mishaps.

The two’fer trap

Those eye-catching “buy two, get one free” deals are just one of many strategies retailers use to get us to part with our money.

Sure, it feels good to snare a discount from the bargain bin. But don’t let a “reduced” sticker shift your focus from how much you’re spending to how much you’re saving. A bargain is only good value if you really need the item.

YOLO spending

Those “you only live once” (YOLO) purchases can be lots of fun. But almost one in two YOLO spenders put their last YOLO buy on a credit card[1], and that can make it easy to blow your budget.

Treat yourself from time to time, and just be sure to plan for it.

Furthermore, avoid unplanned buys by shopping around, sticking to a shopping list and understanding the danger zones – like boredom shopping.

Not paying yourself first

“Paying yourself first” is a no-fuss strategy that involves giving savings priority over spending.

Work out how much you can afford to set aside in savings each week, fortnight or month, then arrange an automatic transfer of this amount into your high interest savings account. Time the transfers to coincide with pay days, then sit back and watch your savings grow.

Understanding your own habits around spending and saving can be a valuable eye-opener to see how you can get back on track − and stay on track − to achieve your savings goals.

[1] https://www.mebank.com.au/media-articles/the-yolo-bug-sucks-in-self-indulgent-spenders/

Get In Touch