Make a saving habit

“I’ll save whatever’s left” can be tricky.

When savings and spending sit in the same account, it’s easy for a takeaway here or a quick shop there to eat into what you meant to save.

Automatic transfer: You could move a manageable amount into savings just after payday, once your bills are covered.

Separate savings space: A separate savings space lets you see what you’ve saved without mixing it with everyday spending.

Main point: Moving a manageable amount to savings and keeping it separate can make saving easier.

There’s no magic amount.

Your budget needs to work with your life, not someone else’s percentage rule.

Start with what you can manage.: If trying to save A$200 leaves you short before payday, try A$20 or A$50 instead. You can always increase it later. A plan you can stick with beats one that looks great on paper.

Small amounts can still add up.

Choose an amount to save each fortnight. The example assumes 26 pays a year and doesn’t include interest.

It only works if you can still cover essentials. Don’t put yourself short just to hit a savings target.

Keep it simple enough to repeat.

The best savings setup is usually one you won’t have to think about every day.

Transfer after payday: Move a set amount to savings when you get paid, if your bills are covered.

Review next month: After a month, check whether that amount worked. Change it if you need to.

Main point: Set aside what you can afford and check back later. It’s fine to adjust the amount.