Madison life - Saving your way to success

Whether your aim is to simplify your finances or save your way to a bigger purchase like your first home, small and simple changes to your habits can help you get there faster.

Where does my money go?
If you find yourself living from pay cheque to pay cheque, then perhaps a financial health check can help you identify what you are spending your money on. You are responsible for what you earn and what you spend, so why waste your hard earned cash on things you don't need?  If you look at all your purchases last month, you may be able to identify areas where you could cap your spending to save you some dollars.  For example, instead of stocking up on naughty treats at the cinema snack bar, go without to save your hip pocket and your waistline while still enjoying the movie with your friends.

Set yourself a goal
Savings is a great idea no matter what lifestage you are at, but when you have a goal in mind the rewards are so much better when you get there.  Do you ever dream of eating a croissant at the Eiffel Tower, or perhaps entertaining friends at your own flash pad...? The one thing these have in common is that you will need to save to make your dreams come true. In time not only will you be able to afford your dream, but you'll also be so proud of what you achieved just by regularly putting aside a little money.

Create a budget
Budgets are a great way to help you be realistic and keep tabs on your spending.The first step in creating a budget is to set aside money for your essential expenses - for example, rent, groceries, transport, utility bills, etc.
Secondly, set aside an amount of money you'd like to save regularly to help you achieve your goal. You'll need to know how much you'll need to achieve your goal, how long a period you have to save for it, then break it down to a monthly/fortnightly/weekly figure - you might be pleasantly surprised at how manageable it is for you to achieve. Lastly, don't forget to include money for life's little luxuries such as eating out, entertainment and clothes. While saving is important for the future you need to have a bit of fun along the way!  But don't go overboard, this is the key area where you can set some limits and make some cutbacks to help you on your way to your savings goal.

Now that you have identified areas for improvement, set your goals and budget, you'll need to put the money you are saving somewhere that will give you the biggest bang for your buck.

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