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The secrets of successful savers revealed

Are you a saintly saver, or a hedonistic splurger?

Figuring out your savings persona, and the mistakes you frequently make, could be crucial given that saving seems to only be getting harder.

As many as 43 per cent of Australians are non-savers, based on ASIC MoneySmart research released Thursday.

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• How to meet your most ambitious money goals
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An ME Bank study published in June backs this up, reporting a lack of cash savings as one of the biggest areas of concern for Australian households.

More than half (54 per cent) of the 1500 households surveyed by ME Bank said they were unable to save each month – the highest in three years.

At the same time concerns about the harsh federal budget are back, keeping consumer confidence low, with more Australians pessimistic about the economy than optimistic.

Despite record low interest rates, Wednesday’s Westpac Consumer Confidence survey also found 34 per cent of consumers believed a bank deposit was the best place for their cash right now.

So here’s how to stop spending and save.

piggy bank

Keep track of every dollar. Photo: Shutterstock

Don’t break the Five Commandments

If you want to make it into nest egg heaven, you may want to tick as many of the boxes below as possible, based on new research.

The results of an online poll released today by ASIC MoneySmart calculates what confident savers – those who think they will reach their goals – have in common.

1. You shall put a dollar figure on it
Knowing exactly how much money you need to save is the mark of a stellar saver, with 78 per cent of respondents listing this as one of their strategies.

2. You shall make a plan
Setting a clear savings plan helps you clarify what you are working towards, according to 75 per cent of respondents.

3. You shall keep track
Regularly reviewing progress towards your savings goal is the tip from 73 per cent of respondents.

4. You shall watch the clock
Setting a specific saving timeframe or deadline is helpful, according to 72 per cent of respondents.

5. You shall hold yourself publicly accountable
Telling your family and friends about your savings plan is recommended by 43 per cent of respondents.Savings secrets

 

“Making a public commitment to your goal means you’re more likely to stay on track and then meet it,” says ASIC MoneySmart senior executive Miles Larbey.

To help you stay on the savings straight and narrow, ASIC MoneySmart has worked these tips into its new TrackMyGOALS app.

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The big bad list of saving sins

You might be feeling smug after looking at the previous list, but you haven’t earned your halo just yet.

Now it’s time to determine if you are a bad saver, thanks to Mozo‘s Kirsty Lamont, complete with a list of ways to repent.

1. Is YOLO your life motto?
Getting caught up in the emotion of special occasions or a night out with friends and rattling off the ‘You Only Live Once’ line is often when we make decadent purchases – such as buying the most expensive bottle of champagne on the list.

TIP: Set yourself a budget for your occasions and take only that amount in the form of cash so you physically can’t overspend.

2. Is your saving haphazard?
Teaching yourself to be a good saver is like teaching yourself to eat more healthily or do more exercise. It is about getting into a habit so that the behaviour becomes automatic. You won’t get into a successful savings habit if you’re forgetful, procrastinating or making excuses.

TIP: Automate the habit by setting up a weekly or monthly direct deposit into your savings account.

3. Are too easily persuaded?
It’s very easy for others to persuade you to take a cab when you’ve planned to get a bus or assume you’ll contribute to an expensive group gift. If you really want to reach your savings goal, you’re going to have to make sacrifices and you need to encourage those around you to support that.

TIP: Stick to your guns and come up with a polite or funny ‘line’ to handle these situations.

4. Do you fail to budget?
Without a budget, you simply don’t know how much is coming and going, making it far too easy to spend everything.

TIP: Use ASIC MoneySmart’s budget planner.

5. Do bills catch you unawares?
Not being aware of upcoming or large bill payments like car insurance or an unexpected tax bill can often mean your savings take a hit.

TIP: Build this into your savings plan by setting up another account just for bill payments and put some money into that account each time your salary is paid, alongside your savings of course.

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