Follow these easy steps to start saving and reach your money goals sooner.
First time saving: Start small
If you haven’t saved money before, the easiest way to get started is with something small and fun!
Pick something that doesn’t take long to save for, such as a weekend away or spa day. This makes saving a positive experience and gets you ready to set bigger goals.
Once you’re ready to start, here’s the four steps to save.
1. Set a savings goal
Having a specific savings goal – written down - helps you stay focused. It doesn’t matter how big or small your goal is. Just writing it down helps make it real.
To set your goal, ask yourself:
- What is your top priority?
- How much will it cost?
- When would you like to achieve it?
Then divide the cost by the number of months between now and when you want to achieve it. That’s how much you need to be able to save each month to achieve your goal.
Keep it realistic though – otherwise it’s a daydream, not a goal.
How long will it take to reach your goal?
Use the savings calculator
2. Look for ways to reduce spending
If you’d like to save faster, look at your expenses to see where you can make quick savings.
Look through your bank statement for the last two months and see if you’re spending money on things you don’t really use or aren’t important to you. This could be things like subscriptions, memberships or eating out.
You might also be able to save money on your fixed costs like insurance, mobile phone or energy bills. Compare suppliers to make sure you’re getting the best deal.
We have some simple ways to save money here. And it helps to have a written budget.
Set up your budget and save it online.
3. Make your savings plan
Now you’re ready to actually start putting money aside towards your goal. As a reminder, be specific about:
- what you want to achieve
- how much you intend to save, and
- by when.
If you want to save for several goals at once, work through the costs for each goal and keep it realistic and affordable.
Share your plan with family or friends to stay motivated. Put up a picture of your goals as a daily reminder. Celebrate each step along the way.
Putting aside even a small amount regularly adds up over time. For example, suppose you want to create an emergency fund for unexpected big bills. Saving $25 a week becomes $1,300 in a year.
4. Automate your savings
To stay on track, make saving as easy as possible.
Transfer part of your pay into a separate savings account. If you’re saving for more than one goal, consider setting up an account for each.
You can set up an automatic direct debit from your main account. This way, you’re saving without having to think about it.
The sooner you start, the more you’ll save. Good luck!