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This
booklet gives information of a general nature and is not intended
to be relied on by readers as advice in any particular matter.
We
suggest you consult your financial planner on how this information
may apply to your own circumstances.
Other
formats
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TIP
SAVE ON BANK FEES
Most
of us know that if we withdraw cash from an ATM
of our own bank we're likely to pay less in transaction
fees. And internet and phone banking are cheaper.
But there are many other ways to save. Smarter Banking
Make the Most of Your Money includes information
on bank fees and ways you can reduce how much you
pay. |
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When it comes to achieving your goals, how much you save
is more important than how much you earn. If you are spending
more than your income, you might want to consider ways
you can reduce your expenses. |
ARE YOU
OVER SPENDING?
Use your budget to gain a better understanding of your
spending habits. This will clearly show you where your
money is going and where you may be overspending. Try
to identify the areas where you can comfortably spend
less. You need to be honest with yourself - what are essentials
and what are luxuries? Most of us buy things we don't
really need and those unnecessary purchases can really
add up. |
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Here
are some tips to get you started1:
| Ways
to cut back |
How
you could save |
| Take
your own lunch to work |
You
could save up to $5 (or more) every day you do. Cutting back
on your daily cappuccino could also help. |
| Buy
unbranded groceries |
They
are generally cheaper, especially for basic items |
| Put
your change into a savings jar at the end of each day |
Create
a little pot of ready cash and use the money for small personal
expenses. Saving what you might otherwise have spent can also
show you what expenses are essential and what you can live without. |
| Use
pre-paid cards for your children's mobile phones |
Make
your kids top up the card themselves if they spend it too fast. |
| Pay
cash |
Retailers
will often give you discounts on electrical items and furniture
if you offer to pay cash on the spot. Try it with other more
expensive items too. |
| Save
for your next car and choose a lower-priced model. Then shop
around for loan and insurance deals |
A
big deposit reduces the total purchase price, and you may also
get savings on borrowing and insurance costs. The dealer's finance
or insurance may cost more. Consider paying off any insurance
monthly if there is no penalty. It's usually easier to pay a
small amount each month than a large amount once a year. |
| Use
self-catering holiday accommodation |
Saves
on eating out at cafés, hotels and restaurants. |
1.Source: Some tips from the Australian Securities and Investments Commission (ASIC),
www.fido.asic.gov.au
START
OUT SMALL
Even saving a small amount can get you on track.
The table below outlines just two of the cost cutting
measures from above. As simple as they are, putting
them into practice could mean you save around $9,000
over 2 years.
|
|
Cost
saving
|
In one week |
Over
2 years1 |
| Take
your own lunch to work and cut back on your
daily muffin and cappuccino. |
$50 |
$5,471 |
| Buy
unbranded groceries (or supermarket brands)
for standard items, such as bread and milk.
|
$34
|
$3,721
|
| TOTAL
SAVINGS |
$84 |
$9,192 |
1.The
figures used assume interest of 5% pa before tax
and calculated on a weekly basis.
HOW MUCH COULD YOU SAVE?
Use the table below to calculate how much you could
save in a week or month.
|
Cost
Saving
|
Amount |
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| TOTAL
SAVINGS |
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