Today we are sharing some useful saving tips to help you navigate your next chapter.
If you were fortunate enough to maintain work stability in 2021, you may have noticed a boost in your savings as a result of reduced opportunities to spend your money across all industries impacted by COVID-19.
Now that we are moving into a post-pandemic economy with restrictions easing across the country and international borders due to open, it’s important to review your savings strategy and how you can realistically save to meet your financial goals.
Start with your goals
Whether your savings have been positively or negatively impacted by COVID-19, you need to take a step back before moving forward. Look at the big picture of your financials and review your goals. Create a vision for the future and start thinking about how your finances play into it. What are you saving for in the short and long term and how realistic are your goals at the moment?
Review your pandemic savings and spending habits
Now it is time to look at your saving and spending habits over the past 18 months. Look at how much you were able to save compared to your pre-pandemic habits.
If you were able to save, how much have you saved and how are you going to maximise this saving? What did you spend money on and is this a necessary expenditure? For example, you may think about cancelling multiple online subscriptions. By eliminating discretionary spending as much as possible, you’ll be able to focus spending on what is bringing you happiness and moving you closer to your big goals.
Refrain from revenge spending
Revenge spending refers to the spending that you ‘missed out on’ during the pandemic. If you live in a state that has been impacted by ongoing lockdowns, you probably didn’t spend as much on dining out, gym memberships and attending events. Travel spending was certainly at an all-time low with border restrictions in place domestically and internationally. Does this mean that all of the money that you had planned to spend needs to be used as a splurge when we return to a post-pandemic world? We certainly encourage you to think about how you can maximise your savings by investing rather than using it as an additional spending opportunity.
Create an emergency fund
The pandemic has highlighted the importance of having emergency funds ready in case of unexpected events such as lockdowns or job loss. Putting this money aside will give you peace of mind in moving forward without focusing on the unexpected. If you can put aside three to six months of essential expenses, you’ll have confidence that you can withstand any future uncertainties that are beyond your control.
Invest in a Term Investment
One of the easiest ways to maximise your savings is by opening a high-interest Term Investment. Here’s why this is one of our favourite savings tips…
If you’re keeping your savings in an everyday bank account, it is unlikely that you’re earning much interest. By looking for a high-interest Term Investment, you’ll be earning more so that you can reach your savings faster! With APS Term investments, you can earn up to 4.00% p.a., which is nearly four times what most banks are offering right now.
To learn more about APS Term Investments, click here.
Need financial advice?
We hope that these savings tips have helped you plan for what’s ahead. As restrictions start to ease, we encourage you to take the time to think about your savings and financials. It is tempting to default back into spending mode, but there are so many opportunities for growth if you know your goals and are able to create smart saving strategies.
Whether you’re interested in opening a Term Investment or seeking advice from a Financial Planner, the APS team of experts are here to help you every step of the way! To view our full suite of services, click here.