6 Tips for Mastering Your Savings Plan
17 Apr 2019
Posted in: Savings and Deposits
Get to Grips with Your Budget
Ah yes, the good old-fashioned budget. Maybe you’re the type of person who already knows exactly what you spend each month – good for you. If you’re more of a spontaneous spender, this is a very important step. Crack open an Excel spreadsheet, and list off all your expenses. You need to know what’s currently going out of your account versus what you have coming in. Be brutally honest – remember this is for your eyes only. Look for areas where you can cut back. We’re not going to tell you to stop getting that morning coffee or cancel your gym membership; everyone is different. But you should decide where you can sensibly make changes that suits your lifestyle. Remember, all those small things add up.
Set Up a Savings Account
Your very first port of call is to figure out how much you need to save. Input your details into our Savings Calculator and you’ll get a clear idea of how much you need to be saving each month in order to meet your target. This is also a good time to organise your accounts.
If you haven’t already got one, now is the time to do it. There are lots of different AIB saving account options to choose from. To avoid the temptation of dipping into your savings, consider an online notice deposit account. This type of account requires seven days’ notice to access your funds, making you less likely to make withdrawals. There’s no minimum opening balance required and it’s all online, so you can watch those savings accumulate every time you log into your account. Set up another instantly accessible savings account for your emergency fund too, just in case an unexpected bill pops up.
Assign Your Money the Day You Get Paid
We all love payday, but seeing that lump sum hit your account can make it very tempting to splash out. As soon as you get paid, use our mobile app to whisk a chunk of it over to your savings account, so you’re not tempted to spend it.
You can also take a deep dive into your finances with the My Money Manager tool to spot where your budget is going. This nifty tool charts your spending in easily digestible charts and graphs, making it simple to track where you’re spending your money. You can also set up unique savings goals linked with your accounts so you have a target to aim for.
Reframe Your Saving
You’ve decided to go after a goal, and that’s a pretty great thing to do. Yes, you’re making sacrifices, but can you reframe them to give the whole savings experience a positive spin? If anything, it’ll help you stick to your plan. So, bringing your own lunch could be an excuse to start eating healthier, going out less means you can pick up a hobby or work on a personal project. Instead of meeting a friend for dinner, get active together with a walk or run.
We’ve all seen the figure of how much you can save by switching providers for things like your internet and electricity. Yes, it’s a pain, but if you set aside a switching day, you can get them all changed in one fell swoop. You’ll likely be on hold for a few hours, but getting it all done at once is better than attacking one call every lunch break.
Build in a buffer for fun and set aside some money each month to treat yourself with. Take advantage of coupon sites and deals where you can, and don’t forget to sign up for AIB Everyday Rewards to get cashback from lots of stores when you shop.
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