Whether it’s to abolish debts, save for a dream holiday, school fees, higher education or plan for retirement (huh?!? No really, starting young can be beneficial in the long run, but that’s a story for another day), it’s time to plan for it.
So you have dreamed it, visualised it and now you are ready to do it. That’s great! In week four you hopefully found a few more funds to work with. It doesn’t matter if it’s a large amount or small, every bit counts.
Work out how much you need and how long it will take you to save for that [insert savings goal here] by visiting the Money Smart website.
Here are a few questions to ask yourself:
- Could you continue to enjoy your day-to-day lifestyle without the savings you found in week four? If so, could you consider putting 100% of those newfound savings straight into a savings account?
- Did you find additional income from extra jobs or a pay rise? Can you afford to put all, or a percentage, of that into a savings account? Or could you use it to pay off any debts early, like your credit card?
- Or how about automating your savings by transferring a set amount or a percentage of your wages into a savings account each pay cycle?
- Why not set up a rainy-day account?
Are you seeing a theme here? Instead of keeping your additional funds in your everyday bank account, the benefits of tucking your money away in a savings account means you are less likely to spend it on a whim and you can see your progress.
The LLL offers savings accounts that are free of fees and charges and you’ll be supporting the charitable nature of the LLL. Find out more.
For your week five challenge, add an additional $40 a week to your savings account. By adding $40 a week to your savings, you will have an extra $2,080 over a 12-month period plus any interest earnt! It’s starting to build up nicely.
The LLL prides itself on providing savings accounts that are simple to operate, with a variable interest rate and no fees or charges. The LLL has a variety of savings accounts: personal and joint accounts; guardian accounts for children; and business accounts, including for self-managed super funds and not-for-profit organisations.
As an Authorised Deposit-taking Institution (ADI), the LLL is regulated under the Banking Act and by APRA.
This advice is general in nature and does not take into account your personal situation, needs or objectives. Please consider the Disclosure Documents to decide if this product is right for you.