Steps to being a savvy saver
STASHING cash has become trendy as three in four Australians admit they are now focused on saving.
Restaurant meals, coffee and health cover are among the expenses getting the chop in order for people to save more.
New research from UBank quizzed 1000 Australians and revealed 53 per cent of people believe being financially savvy is cool.
It found many people are sacrificing dining out (61 per cent), buying cups of coffee (41 per cent) and ditching private health insurance (35 per cent) to get ahead.
Personal trainer Megan Hasick, 24, lives at home with her parents and has been saving hard to buy her first property.
She has managed to stash a six-digit sum by rarely spending money on discretionary items such as food and new clothes.
Ms Hasick saves about $6000 a month and hopes to buy an investment property within the next 12 months.
“All my money I have I put straight into savings,” she said. “I’m working four jobs, so until I get a permanent job, I will then look to buy – hopefully a home initially that’s an investment and I can eventually live in.”
The report also found 52 per cent of Australians believe they are in better control of their spending and are savvier than ever before.
UBank chief executive officer Lee Hatton said “every day could be a rainy day”, which had prompted people to become more focused on savings.
“I don’t think people shop enough for interest rates on their everyday accounts,” she said.
“People need to watch out for fees … why would you pay $10 a month to earn a little bit of interest or none?”
Many savings accounts are offering dismal savings returns at just 1 to 2 per cent.
As for dipping into savings, 77 per cent said they felt anxious if they had to touch their hardearned cash.
Lifespan Financial Planning chief executive officer Eugene Ardino said, to be good at savings it was vital to monitor how much cash was stashed.
“Most people don’t know what they spend, and if you don’t it’s very difficult to know what your savings capacity is,” he said. “Get a budget, measure it and your behaviour against it, and try and make it as realistic as possible.”
Mr Ardino said setting up direct debits into savings or investment accounts was critical to avoid spending frivolously.
For those with a home loan, he suggested paying extra off by putting money into the redraw component of the mortgage which did not have a bank card attached to it.
‘All my money I have I put straight into savings ... I’m working four jobs’ Personal trainer Megan Hasick, 24