Make 2023 the year of financial freedom with these three saving strategies!

It’s a new year and what better time to take control of your finances? Making informed decisions now will put you in a much better place in the future. Nobody likes being money wise all the time, but with 2023 right around the corner it’s time to start planning for financial freedom and a clear credit file. There are plenty of simple strategies you can use to get yourself set up for success – anything from outlining a budget that fits with your lifestyle, to finding creative ways to save money every month. Keep reading if you want some guidance on how setting these goals can ensure that 2023 is the year that brings you closer towards reaching financial freedom!

If you’re a young Australian looking to save more money this year, you are not alone! Recent research suggests that most of us have the same objective. To successfully reach your goal, it’s essential to think about which savings strategy is best for you and your personal financial circumstances. There are several paths available – do some soul searching and select one today! 

A YouGov study, conducted in collaboration with u-bank and surveying 1000 Australian Millennials and Gen-Zers aged 18 to 41 from November 3rd to 8th 2022 revealed that 87% of the participants plan on setting a financial resolution for 2023. Notably, 60% of these people indicated their goal as saving more money next year.

In order to save more of your hard-earned money, there are a multitude of saving options out there – and the option that works best for you won’t necessarily be the same as someone else’s. It is essential to weigh up various strategies and determine how you will reach your financial goals this year.

Uncover three methods profiled in the survey that can help you save money and put those savings to work for your benefit:

Establish a saving target for yourself and save!

While establishing an ambition like “save more” is a worthy and commendable goal, how will you measure your progress or determine success?

A recent survey revealed that an impressive 71% of young Australians set a savings goal when trying to save money, and almost all (95%) felt more successful at saving with this approach.

To reach your desired savings, you must set a specific goal that includes both the amount of money and how long it will take to achieve. Having this purpose gives you an idea of what is needed in order for success, as well as providing motivation to stay on track towards your financial objectives. 

As an example, if you desire to save up for a new laptop, set yourself the goal of amassing $1000. A savings calculator can assist you in achieving this by calculating that with a 1.78% interest rate and depositing $80 each month into your account within 12 months will bring in roughly $1049 – success!

This example is merely provided as an illustration, and does not take into account any fees or other charges. Please do your own research before committing to a financial decision.

Diversify your savings for a secure financial future.

To effectively manage your finances, a popular strategy is to divvy up and separate your money into different “buckets”. Keeping your savings in its own distinctive account helps you resist the urge of diverting it for everyday spending. Doing this allows you to steadily invest in yourself and secure a better future.

According to a survey conducted by YouGov and u-bank, an overwhelming majority of young Australians – 74% – prefer to save their money in separate savings accounts or ‘buckets’. Even more impressive was the finding that 94% feel they are better at saving when utilising this buckets strategy. 

Australian Deposit-taking Institutions (ADIs) are renowned for their selection of savings accounts tailored to savers, however there is a vast array of options to choose from. Interest rates, features and benefits vary greatly between different banks – it’s essential you research your choices appropriately before committing to an account that works best for your personal financial situation.

If your financial situation allows, take advantage of the bonus rate offered in many savings accounts – you could reap greater returns on your investments. But if not, don’t fret! There’s still plenty of other options available that may be more suitable for you.

If you’re looking to save for the long-term, a savings account that only offers higher interest rates during an introductory period may not be your best option. On the other hand, if you have a short-term goal in mind, this type of account could be beneficial. 

Investing your money in a term deposit might be the solution for you if you plan to leave lump sums untouched for an extended period. However, keep in mind that savings accounts offer more flexibility than term deposits do.

Allocate your expenditure wisely

After receiving your pay-check, have you ever taken a moment to reflect on where that money is heading? According to recent polls of young Australians, 68% stated they keep the same bank account for their wages and general expenses. On top of this 32%, responded by saying they use different accounts. By utilising strategies such as “buckets” strategy, it can help determine how you manage your savings and assist in moving closer towards achieving goals! 

To maximise your money’s earning potential, consider having your salary deposited straight into a savings account and only withdrawing the necessary funds you need for daily life. By doing this, you will allow the rest to accrue interest with time!

No matter your age or the approach you take to savings, it is critically important that you compare bank accounts before taking any financial steps. If you are unsure which choice will help you attain a secure future, then consider consulting with an accountant or a professional in finance for expert advice. 

Making financially-aware decisions now will put you in a much better place to succeed come 2023. Hopefully by then the global economy will have recovered and we’ll all be able to enjoy life a little bit more. However, even if things stay the same or get worse, being money-wise now will help you weather any storms that come your way. So start making some plans today – your future self will thank you for it!

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