7 hacks to grow savings

You’ve got just $100. You want to grow savings. Follow our simple hacks to fast-track your way to a decent stash of personal cash.

Even if you’re starting from scratch, a few easy steps can ramp up your savings in no time at all.

1 - Open a dedicated savings account

It seems like a no-brainer right? Yet research by ME found 16% of Australians save their money in an everyday account. Bad move. Not only will your money earn little or no interest, it’s just too easy to dip into the account when you’re on the go. Opening a dedicated savings account lets you benefit from the helping hand of interest earnings, and you’ll be able to sit back and watch as your honeypot grows. You can compare the ME savings accounts here.

2 - Sweat the small stuff

If you’re still struggling to grow savings take a look at where your money goes. It’s a fair bet you’re spending on small buy regular outlays that add up over time. Rethink your money habits to build savings sooner.

3 - Quit hoarding the hundreds

Ever noticed that you don’t see many $100 notes floating around? There’s a good reason for that.  Australian’s are hoarding them. No, seriously. It’s estimating around $20 billion in notes is stashed away, get the folded stuff out from under the mattress and into a savings account where it will earn interest.

4 - Enjoy everyday wins

There are a few simple ways to save without sacrifice on your shopping and bills. Plan your meals and write a list before you hit the shops, so you can easily stick to your shopping budget. Start in the meat section as it tends to be the most expensive part – and opt for whatever’s on special.

When it comes to bills, it’s worth taking advantage of a competitive utilities market. Shop around for a better offer, especially one with big discounts for paying on time – some can easily save you 35%. Switching off appliances, turning off the lights, energy rating checks and turning down the air con/heater a few degrees are all small efforts that make a big difference.

5 - Get smart about the rate 

When it comes to saving, it’s hard to go past online savings accounts for a decent rate. But it pays to look for an account offering a consistently good return. Those sweet-sounding introductory offers only last a few months, after that the rate your money earns can nosedive.

6 - Make saving automatic

ME research shows almost one in two (49%) of us only make a deposit into our savings account when we have spare money. Like, who has spare cash? Grow your nest egg by giving savings top priority. It’s easy. Set up an automatic transfer that sweeps a set amount to your savings account each pay day. It doesn’t matter if you deposit $20, $50 or $100, just make it a regular thing to help your savings skyrocket.

7 - Work towards a goal

Setting a few goals is a great way to stay motivated, and according to a ME survey, the two most popular savings goals are a holiday or car. No matter, what your goals, set a target, work out how much you need to get there and celebrate milestones along the way. You have more than one goal? No problem – use savings buckets. Set up separate online savings accounts for each goal. As long as you choose a fee free account you can’t lose.