INSIGHT

5 tips to fast-track your savings

Simple habits can make all the difference

An overseas holiday, a home deposit, a car or an education fund – no matter what you’re saving for, there are some simple ways you can achieve your goal even sooner. Here are five ways to boost your savings balance.

1. Set a savings safety-net

Most of us save with a particular goal in mind – this year’s summer break, for example. But when the holiday is over, there’s nothing left but memories.

Instead, get into the habit of direct debiting a set percentage of your salary every month into a high interest savings account. You could even split your pay packet and just keep a set amount for expenses and bills in your everyday account.

2. Commit to your emergency fund

On average, Australians save 12% of their disposable income every month1. If that seems high, think about any areas you could cut back in your budget – just $50 more each month can quickly add up and give you a much more comfortable buffer in case unexpected expenses come up.

3. Pop any windfalls straight into your savings

If you get a bonus, tax return or a generous gift, start earning interest on it straight away. Deposit it into your savings account, and remove the risk of temptation to shop.

Get into the habit of direct debiting a set percentage of your salary every month into a high interest savings account.

4. Tap into the power of compound interest

Albert Einstein once described compound interest as 'the eighth wonder of the world.' Effectively, your savings keep making money for you while you sleep – because the interest you earn is also earning interest.

5. Cut down your credit card debt first

Of course, compound interest works the other way too – if you are carrying credit card debt, you might be paying interest on your interest. Which is why it's also important to clear that debt before you commit to your new, improved savings plan.

Important Information:

1. http://www.smh.com.au/money/the-average-australians-savings-how-do-you-compare-20160317-gnlkq8.html

Important Information:

Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. You should consider if this advice is appropriate for your situation. We recommend you read the Product Disclosure Statement (PDS) or Terms and Conditions, available online or via a Citibank branch, in addition to seeking independent legal, financial and taxation advice on your personal circumstances before acting on the information contained in this material.

This material is for general information only. All opinions are subject to change without notice. This material is taken from sources which are believed to be accurate, however Citibank accepts no liability of any kind to any person who relies on the information in it.

Investments are not deposits or other obligations of, guaranteed, or insured by Citibank N.A., Citigroup Inc., or any of their affiliates or subsidiaries, or by any local government or insurance agency, and are subject to investment risks, including the possible loss of the principal amount invested. Investments are subject to risk, including loss of income and principal. Past performance is not an indicator of future performance. Due to exchange rate fluctuations, you risk losing capital if you invest in foreign currency. Some products are not available to US persons and may not be available in all jurisdictions.