Extracted from Women's Weekly May 2009
From Chintana White, a financial adviser with ipac financial planning
From Chintana White, a financial adviser with ipac financial planning
- Start Today
The earlier you start, the sooner you start earning interest, plus interest in that interest. This "compound interest" makes a huge difference. For example, if you start saving $500 a month at an interest rate of 5%, by 2019, you'd have $78,890. Start saving $1,000 per month in 2014 and you'll still only have $69,289 by 2019. The difference is the magical compounding interest. - Be a squirrel
Cut out one "little" luxury expense like your daily latte. Sounds pointless? Save just $3.50 a day and you will have $1,277.50 by the end of the year - even without interest. - Pay yourself first
Set up a direct debit into a savings account. "I recommend saving 15 per cent of your salary every month, if you can," advises Chintana. - Keep a diary of your spending
Monitor ATM withdrawals, keep a copy of bank statements and collect receipts from your entertainment spending; they show how much you spend and where you can save. - Don't be "cent wise, dollar foolish"
In hard times, avoid stinging on "required maintenance" such as car repairs, as these cost you more in the long run.
Comments