Let’s face it. Growing savings isn’t always easy. There’s always a bill waiting to be paid, and well, spending is always more fun than saving.

But there are two great reasons to have a stash of cash set aside in a savings account.

First, it lets you earn interest. That’s money for nothing – and who doesn’t love that?

In addition, having personal savings lets you tick off a personal bucket list (overseas vacation anyone?) while still letting you pay unexpected bills when they arise.

So, it’s worrying to come across research by Compare the Market showing one in ten Australians have no money in their emergency fund for a rainy day^[1].

It’s not that we’re all flexing our spending muscle.

Australia’s household saving ratio, which shows how much of our disposable income we’re tucking away, has plunged from a high of 24% during the pandemic, down to a wafer thin 0.6% at present^[2]. 

That’s well below pre-pandemic levels of around 5%³, and while it’s a sure sign the cost of living crisis is eating into household budgets, the lack of spare cash is leaving many Australians vulnerable to unexpected bills.

Time to get serious about saving. And no, it doesn’t have to mean living on baked beans, or busking on a street corner. 

Check out our three easy-as ways to grow your savings.

1. Try ‘loud’ budgeting

We all know budgeting is good for us. It lets us balance the books so we’re spending less than we earn, leaving money left over to grow savings.

‘Loud’ budgeting goes a step further.

It’s all about proudly telling everyone you’re sticking to a budget, and it can be a great way to avoid the temptation of blowing savings on unplanned costs like, say, a big night out.

Give it a try. Chances are you’ll find plenty of mates are trying to save too.

2. Know what sort of saver you are

Matching your savings accounts to your savings habit is a smart move.

If you have the discipline to set aside savings on a regular basis (make no withdrawals each month) Easy Street’s Bonus Saver can reward you with a competitive rate of bonus interest.

If you think a few bills could be coming up that may mean dipping into savings, Easy Street’s Savings Account could be the solution, letting you access your money without interest or fee penalties, while still earning interest.

Better still, set up multiple accounts for different purposes.

You can, for example, set up multiple Bonus Saver accounts – each designed for a different goal, while using our Savings Account to grow rainy day money.

3. Set yourself a goal to aim for

It can be much easier to skip a takeout lunch at work when you have a mental picture of yourself lazing on a beach in Bali.

If that sounds like you, set a goal to work towards.

Easy Street’s savings planner is a great tool here. It lets you work out how much you can grow your savings based on different amounts and terms. Play around with the numbers to see what works for you.

Use the Easy Street mobile banking app to track your savings on the go. Seeing how much your savings have grown can help you stay motivated when you’re tempted to spend.

For more ideas on growing savings, call the Easy Street team on 1300 12 14 65.   

 

^[1]https://www.comparethemarket.com.au/news/1-in-10-aussies-have-no-money-in-their-emergency-fund-new-survey-finds/

^[2]https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/jun-2024

³ Household savings ratio – Australian Banking Association