1 week Ago By Yahoo Finance AU
Saving money is hard, particularly today - but it’s also the key to getting ahead. The good news is that with the right approach, you can make your savings happen a lot easier . Saving more is possible , just four years ago our national household savings rate peaked at 24.
10 per cent . But in the four years since, our savings rate has declined to only 2.5 per cent of income - or $48 weekly based on the average household income of $1,923 per week .
The impact of this change is huge. For a 30-year-old today, saving just an extra $48 weekly and investing this money based on the long-term sharemarket average of 9.8 per cent would mean an additional $750,061 in investments at age 65.
Finding a way to boost your savings even just a small amount makes a huge difference over time. There are four key areas most people miss the opportunity to save more and get ahead faster. RELATED Shop your mortgage around Mortgage repayments are one of the biggest line items in your household budget, and saving even a small amount in interest can make a big difference to your savings bottom line.
The statistics show that the average difference in mortgage interest rates for new vs existing customers across Australia is between 0.5 per cent and 1 per cent. Based on the Australian average mortgage size of $640,998 , this means if you haven’t shopped your mortgage around in a while you’re potentially paying between $3,204 and $6,408 more than you need to each year.
You should be reviewing your mortgage at least once a year, or getting a good mortgage broker to do this for you. Thankfully today technology makes this task a lot easier, you can use mortgage savings calculators to compare the full market and see how much you can save. Cancel unused subscriptions The statistics show that Aussies waste around $8 billion dollars each year on subscriptions they’re not even using.
These days it’s so easy to set up a new subscription, whether it’s for technology, a gym membership, or some other convenience. But it’s just as easy to forget about these subscriptions and end up paying for something you’re not using or getting any value out of. When you take the time to regularly review your subscriptions, you’ll save on average $1,261 annually.
It’s generally best practice to keep all of your subscriptions coming from one account or one credit card, that way it’s easier for you to stay on top of them..
