5 steps to smart saving

23 Jul 2012 | news , Financial Advice

One of the most important things in life is a smart personal savings plan that will help you reach your financial goals.

Along with making it easier to do the things that are most important to you and your family, the right wealth strategy can also offer much needed peace of mind.

To kick start your own savings plan, you might want to think about the different obstacles that are stopping you from reaching these goals.

A common problem that many people have and that can lead to an immediate impact on their savings goals is paying bills on time. It may seem obvious, but setting a date each week to get all of your paperwork and banking in order can boost your savings.

Making smart, timely decisions is an effective way to stay on top of costs and household bills, as is laying down the foundations for better budgeting practices. Sticking with a scheduled will also reduce the risks associated with late or overdue payment - which at the end of the day means more money in your own pocket.

Another good idea is to keep a list of all your accounts. Having money tucked away in financial, investment or retirement accounts might make sense financially, but it can also be confusing and an easy way to lose track of how much you are spending or saving.

By keeping a list of all your accounts and the information that goes with them, you won't have to worry about any money going missing. You can also apply the same method to your household bills and groceries - which will make it easier to keep track of accounts.

Anyone with a bad credit history will want to think twice about pre-approved credit cards or loans. This might be difficult at the time, but you will quickly find that reducing spending on high-interest cards is a smart move forward.

You can also ask your bank to link a credit card to your debit account, which may be a good solution for anyone who still needs to use credit to pay for certain items.

Automatic transfers or savings accounts are a great way to cut back on frivolous spending and increase savings without having to think about it. Simply set up an account to transfer into on a weekly, fortnightly or monthly basis and watch as your money grows.

ipac is one of Australia's largest financial advisory firms and has offices based across the country. A wholly-owned subsidiary of the AMP Group, ipac specialises in research and financial advice that helps clients lead happier, more fulfilling lives.