lifestyle n

If your savings are looking a little lean lately, you could be caught in one of five money traps. ME Bank explains…

Check your savings progress, and if you’re falling behind, you could be falling into one of the five traps reported by over 2,000 Aussie savers.

Trap 1: You’ve been thrown a curveball

An unexpected event is the single biggest reason we lose savings momentum. The solution is to grow emergency savings. Add a little to your slush fund regularly so that surprise bills don’t become financial shocks.

Trap 2: You set the bar too high

Aiming to save too much too fast can be a recipe for disappointment. By this stage of the year you probably have a good idea how much you can comfortably set aside from each pay packet. Use this as your savings guide, and work towards a realistic goal.

 

Trap 3: Reality caught up with your budget

If overspending on budgeted items is holding you back from your savings target, review your spending looking for ways to save. Plenty of apps are available to help track spending.

 

Trap 4: You’re giving in to ‘restraint bias’

Restraint bias describes the situation when someone wants to save but gives in to temptation when they see, say, a brilliant new outfit on sale. We all have limited willpower and the easiest way to curb restraint bias is to automate your savings by setting up a transfer of funds each pay day.

 

Trap 5: You’ve lost your saving mojo

By now, the savings goals you set in January may be losing their lustre. Reignite your savings mojo by breaking down longer term goals into short term targets. If savings burnout is becoming a real possibility, take a short break, revitalise and hit the ground running with your saving goals refreshed.

 

This article was provided by ME Bank, a bank that is 100% owned by industry super funds, including Vision Super.

Members Equity Bank Limited ABN 56 070 887 679.

 

Latest videos

  • [HD] Industry super funds compared to retail funds
  • [HD] Are you uninsured?
  • [HD]  Start planning for your retirement today.
  • [HD] What would happen if you lost your income?
  • [HD] Find out how you can close the super gender gap
  • [HD]  Investment outlook 2019
  • [HD] Investment snapshot 2018
  • [HD] Aim for your dreams
  • [HD] It's time to get ready
  • [HD] Low cost/sustainable super option from Vision Super

Follow us on social media today

Twitter feed

We are thrilled with the creative results of our latest campaign promoting the Innovation and Disruption option. Ch… https://t.co/92XsP4CUj2
16 July 2019
Vision Super is calling on better labour practices and an implementation of labour rights at @amazon - read more he… https://t.co/QcctsmxJgL
11 July 2019