SAVE YOURSELF IN 2007

Top 5 tips on how to save

We all talk about it, but the majority of us never seem to be able to save.  Despite our best intentions, too many reasons to spend seem to get in the way.
 
To help you overcome these hurdles, financial guru and author of Unlock the Secrets of Your Money Personality and Change Your Life, Greg Smith, has five tried and proven saving methods.

1. Track and Save - Take a small note book with you everywhere for a two week period and write down what you spend your money on. Then take a close look at the things you could go without. For example, instead of buying two take away coffees a day cut down to one. Immediately you will save a minimum of $10 a week and that works out to be $520 a year. Now try this same method with other areas and you will be surprised how much you can actually save if you simply control your spending.
 
 
2. Percentage Method - Calculate 10% or 20% of your after tax salary and ask your pay officer to automatically deposit that amount each week into a high interest savings account (ING Direct, Dragon Direct or Easy Street) Start with a lower percentage at first until you get comfortable and then increase the amount each year.along.

3. $5 notes - Every time you get a five dollar note put it aside and at the end of the month deposit your collection into your high interest savings account. You can try this with any denomination.

4. Rounding Method - Round off your salary to the nearest zero and save the amount you round off. For example if you earn $420 a week, take the $20 and put it in your high interest savings account.

5. Pay Rise - If you are fortunate enough to get a pay rise put the increase straight into your high interest savings account. By doing it this way you won't even miss the extra money and you'll build up your savings quickly. With Australian household savings at a 25 year low and the prospect of an uncertain economic future now more than ever is the right time to start saving. 

Wish you had more of this?
 
Greg Smith, Author and Lifestyle Money expert www.lifestylemoney.com.au.

Don't want your kids to get caught in the same old money trap that you are?

We have found the most amazing device for helping children to save and really understand basic money skills, The Money-Ed-Box.

This is how it works: 1.  For the Giving compartment children are encouraged to save up to give some money for charity. 2.  The Living compartment is for spending and here we encourage children to think about spending wisely on themselves as this compartment is for all the money they need for day to day living. 3.  The Saving compartment is for short term savings like a new toy or CD. Interestingly it has a screwed down lid (well temporarily at least) to really show that his money is not to be easily touched. 4.  ‘Wealthing’ is the term used for money that is put away for the long term. This compartment also has a screwed down lid to also show that wealthing is a long, long term thing. The Money-Ed-Box also comes with a 28 page Parent’s Guide written by Greg Smith which provides a wealth of knowledge on teaching children about money and an interactive CD which helps track how much is being deposited and withdrawn from each of the 4 compartments.  It automatically totals each and provides an overall total at any one point in time.  Some of the topics include : How and When to teach your children about money The art of dealing with pocket money Money games to teach numeracy skills and even information on how to deal with over indulgent relatives, along with an interactive CD which helps children keep track how much is being deposited and withdrawn from each of the four compartments. If you want an original gift for your kids, that will actually help them with their financial future and is just a great lot of fun as well, then this is it.  The Australian designed and produced Money-Ed-Box has a recommended retail price of $34.95 and is available for purchase online at www.moneyedbox.com.au or at selected retail outlets (stockist’s details available online).