Saving more money.  Some are natural savers, others find saving all but impossible!  Saving is a habit everyone should get into.

Saving really is a habit we should all learn as children.  Initially saving for a manageable goal, such as a new toy.  As children get older, saving up an emergency fund is a great start.  Many Australian households have so little savings they couldn’t cover a $1000 emergency.  No one wants to be that vulnerable.

Before leaving home, children should know that they save for wants, and have an emergency fund.

Articles in this section will cover savings.

First, non-savers need to develop a savings habit.  Decide what you are saving for and how much, work out where you will keep your savings.  Then set up a direct debit to automate your savings.  You are far less likely to change your mind and spend it every month if it is automated.  Before long, the growing total in your savings account will impress and inspire you to keep going.

A mortgage offset account is usually the best place to keep savings, as the interest rate will likely be a little above inflation.  Childrens’ savings accounts often offer enticing high initial rates, but kids can only earn $416/year in interest before being hit with 66% tax rates.  The savings accounts interest rates also tend to change regularly (for the worse).

Don’t get stuck in savings mode though.  Your bank account will not pay enough interest to compensate for the devaluing of your savings by inflation.  Your next goal is to save enough for your first investment.  Whether that’s additional contributions to super, share market investments or a property.

Saving is really the first important thing to get right in finances.  A saver has far more opportunities than the spender to make choices, make more money or upgrade their lifestyle.