We all have our own dreams or things that we want, no matter how old we are. To make these dreams come true most of us will need to save.
So where do you stand with your goal, how much savings do you have for your age and how do your savings compare to other people your own age.
The Westpac group discovered that customers on average hold $22,020 in their Transactions, savings and term deposit accounts as of the 31st December 2021.
What makes this worse is this figure is skewed by some large deposit holders. The more realistic figure is around $3,559 being the average for the median band of between $500 and $20,000. This means 50% of people may have more than $3,559 and 50% have less than this.
But what about your age group? As you can see in the below graph, as people grow older their average and median account balances increase.
Your account balances may not look the same as this. You may be in a different financial position and may have very different dreams and goals.
However, no matter what your position, saving (even a small amount) will help you get what you want out of life and help you to feel in control of your money.
Though one alarming figure is that retirees have between $44,000 and $75,000 in savings, now to many that might seem like a lot of savings though it is concerning that this figure may not be enough to live out their retirement years.
Now, if you think that savings might seem like hard work, let me tell you that it is not the case and it is a whole lot easier when you have a clear goal in mind.
The first step to savings success is knowing what you’re saving for, so start thinking about what your goal is. Perhaps it’s a holiday, a home deposit or your child’s education. Maybe you want to start growing your wealth, or the security of having some money put away for a rainy day, in case the ‘just in case’ should happen. Whatever your goal is, make sure you’re clear on what it is.
Now that you have your goal, we have put together some tips to help you get there sooner.
Put a budget in place
It may be common sense to have a budget, but more than a quarter of Australians fail to track their spending. Having a grasp on your incomings and outgoings can give you a sense of control and help eliminate financial stress.
Create an emergency buffer
If your savings feels like you are digging a hole that keeps on getting large and not getting anywhere then an emergency buffer is a good way to get on top of it. A financial emergency is an unexpectedly high power bill, car breakdown, dental or medical emergency. Your favourite winter boots on sale are not an emergency.
Write down your monthly expenses and total up the amount, then triple it—that’s a good amount of money to have set aside for the unexpected.
Look at where you can cut costs
So many of us have no idea where our money goes every week. In a survey conducted by Dodo, it was revealed 60% of Australians waste $240 a week. While independent research discovered that 60% of Australians are paying for online subscriptions they’ve forgotten about. 22% considered a daily barista coffee was considered a must-have. You will be surprised how the little things can add up; a simple coffee a day can add up to over $1500 in a year.
Minimise your tax
No one likes paying more tax than they need to. Yet, every financial year thousands of Australians are missing out on claiming benefits they’re entitled to because they’re simply not across the latest tax laws. There is a multitude of different ways to reduce your tax bill from offsetting your mortgage, utilising salary sacrifice benefits, setting up a family trust or Self-Managed Superfund. It’s always advantageous to talk to an accountant who specialises in your individual circumstances.
If you’re struggling to meet your financial goals—regardless of your financial situation—a chat with a wealth advisory company can be extremely beneficial. After discussing your circumstances and where you want to be financially, Residential Projects Australia can connect you with their network of trusted professionals. This will save you valuable time and ensure you’re talking to the right people with the right qualifications.
If you’re tired of being below average, book your discovery session to discuss how we can assist in helping you achieve the seemingly unreachable financial goals you are striving for.
Growing up in a socio-economic housing estate, Joseph was determined to create a better future. Even as a young boy, he committed himself to a goal of achieving success.
Over the past decade, Joseph has dedicated himself to personal development and wealth creation, resulting in the establishment of a multi-million-dollar property portfolio. He has achieved all this while raising a family of six children and maintaining a strong understanding of the need for a balanced lifestyle.
Joseph passionately believes that anyone can become financially independent and secure regardless of their background and starting point. He is dedicated to guiding others on the path to building their own property investment portfolio.