Setting a savings goal can be a powerful tool for managing your money and making better financial decisions. It can also help you achieve your financial goals faster and more effectively. The first step is having a specific savings goal in mind. For example, rather than resolving to “saving more”, you could have a more specific goal such as “save & invest $10 every week” so you are able to track your progress and stay motivated at each milestone.
Other common savings goals include saving for a home deposit, saving for a child’s education, saving for travel, and saving for retirement. If you don’t have a specific savings goal in mind, having one set up for a rainy day can also be beneficial for unexpected expenses or a sudden loss of income. Learn more on this in our blog ‘Why you should have an emergency fund’.
Now that you have a goal in mind, how can you reach it faster? By automating it and letting it grow in the background of life. Most banks now offer this in the way of scheduled transfers to other subaccounts, and Raiz also has an ‘Automatic Savings Goal’ feature that allows you to easily invest automatically into your Raiz account on a schedule that suits you. Here are several reasons why this can help you save faster:
Automatic Savings Goal can help you save consistently
By automating your savings, you can save consistently without having to remember to transfer money into your savings account manually. This can be especially helpful if you struggle to save consistently or forget to transfer money to your savings account on a consistent basis. Believe it or not, slow and steady can win the race!
“It does not matter how slowly you go, as long as you do not stop.” – Confucius
Automatic Savings Goal can help you save more
You may be surprised at how much more you could save if you didn’t have to think twice about it. If you are using Raiz, enabling our Round-ups feature is another way to save more by investing the spare change you make from everyday purchases. The key is to save and invest small amounts regularly and automatically so it minimises the impact to your everyday life, which can eventually make a big difference to your future.
Automatic Savings Goal can reduce the temptation to spend
When you automate your savings, the money is transferred automatically to your savings account before you have a chance to spend it, which can help you resist the temptation to spend your money on non-essential items. Another quick tip to stop temptation spending is to never go into a grocery shop hungry or without a list!
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett
Automatic Savings Goal can help you make the most out of compound interest
If you are saving for the long term, automating your savings can help you take advantage of compound interest, which is the potential interest that you earn on your savings or potential return on your investments. When you save consistently over a long period of time, your money has the opportunity to grow more quickly to reach your goal, faster and further. Like a snowball effect, the longer your investments have been building, the higher your potential returns can reach.
For more tips on how to stick to your goals for 2023, check out our blog ‘How to stick to your New Year’s Resolutions.‘
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.
You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.
We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.
A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.
The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.
Any opinions or information expressed are subject to change without notice; that’s just the way we roll.
Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
