6 ways to start saving right now

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Team MONEYME|07 September 2023| 3-minute read

With living costs on the rise, it might feel as though saving money is a far-off dream right now.  

But, you can take some tiny steps that will make a difference in the long run.  

Here are six ways to start saving now. 

1. Pay off (or reduce) your debt 💥 

Paying off your debt is the first and perhaps most important step in making sure your money works harder for you. Since interest rates are often higher for debt than savings accounts, it’s usually a good idea to pay off your debt before you start saving (as long as you have a healthy emergency fund to fall back on if you need it).  

Make sure you are meeting your repayments so that you don’t get stung by late payment fees and additional interest charges. You could also look at repaying your debt faster to pay less in interest. For example, if you’re currently sticking to just the minimum repayments for your credit card, could you start paying off more each month to knock down that debt? 

While you’re at it, consider consolidating your debts. This means rolling several debts into one, so you’ll make a single, monthly repayment, instead of juggling multiple deadlines. Plus, you might score a better interest rate.  

2. Simplify the savings process 💫 

This requires two steps.  

First, set up a separate account for your savings. Preferably one with a higher interest rate and no debit card access. You’ll be less likely to dip into them when you shouldn’t. Plus, you’ll see how much you’re building, which will fire up your motivation. 

Second, automate. Set up your accounts, so that every time you get paid, a certain sum goes to your savings account automatically. That way, you won’t have to rely on remembering to make manual transfers.  

3. Think about a term deposit 🌈 

A term deposit is an account that locks away your money for a set period with a high interest rate. Not only does it force you to hang onto your savings, it gets them working for you.   

Right now, term deposits are even more competitive than usual. Shop around for the highest interest rate. But don’t forget to read the fine print and budget to make sure you’ll manage without the money.  

4. Get yourself a goal 🥅 

What are you saving for? Whether it’s a house deposit or a rainy day, write down your goal where you’ll see it often and note how much you’ll need and when you want to get there by. Change the name of your savings account to your goal (if you can) to keep you motivated.  

When you feel like spending instead of saving, read over your goal as a reminder.  

5. Track your spending 🐾 

Work out where your money’s going by tracking your spending. An app that sorts your transactions by type, such as groceries, meals out, and bills, might make it easier. We’ve put together a list of handy expense tracking apps here.

Then, find opportunities to curb your spending (and boost your savings).  

6. Design a bearable budget 🤑 

When designing a budget, it can be tempting to set exciting but impossible expectations – like eating brown rice and lentils for a week, so you can eat out on the weekend.  

But, failing to meet targets can be debilitating. It’s better to budget realistically, then enjoy the rush of achieving your goals. 

Spend some time designing a bearable budget, which helps you save, while letting you live a little. An app might help. 

Tiny steps   

Been feeling financially overwhelmed? It’s no surprise. Rising living costs have been piling on the pressure. 

But, by taking tiny steps, like the ones here, you can regain some control–and start saving today. 

This information is provided by SocietyOne Investment Management Pty Ltd (ACN 604 960 018, AFSL 477365), a MONEYME company. It is intended to be factual information, not financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider your individual circumstances before making any financial decisions.