News Saving for your future
Whether saving for a specific goal or building a financial buffer against emergencies, developing and sticking to a savings strategy will keep you on track to reach your targets. The right savings strategy doesn’t have to be too complicated either, in fact some of the best plans are easy to put in place and not that hard to stick to.
Simple savings strategies
Just like regular exercise and a good diet, saving a little bit of money every week can quickly add up to put you in a healthy position down the track. For example, if you were to save $50 per week you could accumulate the following amount over:
- 1 year: $2,600
- 3 years: $7,800
- 5 years: $13,000
And these figures don’t include the added interest you would receive from having your savings in a First Option Christmas Saver or Bonus Saver account. To ensure this strategy is successful it’s important to work out a personal budget and figure out how much money you can comfortably put aside every week. Our Budget Planner Calculator is a great place to start.
Pay more off your debt
It may not look like it at first, but paying off debt quicker than what is legally required is a really good form of saving for your future. Paying extra on the mortgage every month is a great example of this strategy. With an average loan of $300,000 at 7 per cent over 30 years, if you were to round monthly repayments of $1,996 up to $2,050, the loan would be repaid one year and eight months earlier, saving you more than $25,000 in interest.
Making a lump-sum payment into a loan can also make a big difference. Instead of spending that tax return at the mall, putting this money onto your loan will reduce the overall term of the loan and number of repayments that have to be made. Doing this annually will put a bigger dent in the debt.
How can we help?
We have a range of accounts to help you reach both your short term and long term savings goals. We also offer tailored financial planning services through a trusted long term partner and we have a range of financial planning information on our website.
If you have any questions please contact First Option and we’ll do everything we can to assist you.
