Saving more with ease

Saving more with ease

30 April 2008

It can be very depressing when your savings accounts look emptier than your wallet, but there are very simple methods of improving your savings. Let's begin with the easiest ways you can save yourself money and earn a little more.

Save in an account dedicated to saving

Choose savings accounts with no monthly account keeping fee and a high interest rate. Limited access is probably also a sound idea, as this should hopefully discourage you from spending your savings. Remember, many accounts only pay interest in months you haven't withdrawn money.

Bring lunch to work

Eating out for lunch each day could cost you around $50 per week, so something as simple as bringing lunch in to work may mean big savings over time. $50 per week for 48 weeks of the year (removing 4 weeks of holidays for the average worker) would mean annual savings of $2400. With an interest rate of 7% p.a. that will work out to around $2570 in a year if interest is paid into your account monthly and you don't withdraw anything. If you look at it like that, it seems ridiculous not to bring your lunch in, as would you prefer fast food or most of the cost of a big screen high definition television?

Choose the right credit card

If you can find savings accounts that don't require you to restrict withdrawals for interest to be paid ( for instance, some savings accounts calculate interest daily), then choosing the right credit card could help you to save much more than you otherwise would. Try a credit card with a rewards program, and use it to pay for everything you normally buy as essential. Always repay the entire balance within the interest free period on purchases, but leave the money in your account for as long as you can before you need to pay.

This technique will allow you to keep earning the maximum amount of interest on your money while also earning you rewards points to spend on luxury items and services. You can finance large holiday expenditures with rewards points making it easier to take a break as well as cheaper.

Please browse our site for more information on savings accounts as well as a large range of savings accounts to choose from.

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