The average Aussie has $34,507 in savings, according to a study last year by the National Australia Bank.
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Which may have you asking: Where's mine?
It's a fact that cutting out your daily coffee treat, going militant on weekly grocery bills, or skipping meals out are highly effective ways to save. But that also totally misses the point.
Taking away those things really hurts. If you're anything like us, starting work early on a Monday morning without a flat white is a dire situation for all involved.
Saving is even more unlikely with a glittering consumer paradise at your fingertips 24/7. Swipe here, pay wave there - you'll probably soon be able to impulse-buy purple Crocs just by thinking about them (back off, Amazon).
So how, or where exactly, do you carve out your $35K, and skip the suffering?
The good news is that helping people save is our actual day job; to make it easier, and better. We know from experience that new, disruptive or painful habits don't stick, especially if they take away small joys.
With that in mind, here are three quick, easy ways to save without even realising you're doing it.
1. Set and forget
This is a payment that goes out automatically on the day you get paid, using the same smooth and effortless concept as tap and go, except you're the one who cashes out.
As little as 1 per cent put aside each month would become a pot of $900 in just 12 months, based on the average Aussie annual salary (as of May 2023, according to the Australian Bureau of Statistics).
2. Check in with your subs
Each Australian spends an average of $1261 every year on "unused subscriptions and forgotten outgoings", according to some maddening research by ING earlier this year.
Two quick checks will take you just seconds: Go to your phone's settings, your account and check your subscriptions. Then, in your online banking app, look for regular, recurring or direct debit payments.
Put a stop to anything that doesn't regularly bring you joy.
3. Squeeze the cash out of your cash
However much you manage to scrape together, get that money working for you. As always, we recommend you read the fine print on any headline rates, but a quick Google search shows a handful of big Aussie banks offering high-interest savings accounts and compound interest options.
You also have fixed income products, targeting higher returns to help you take advantage of the compounding effect. (Compounding means you earn returns on your initial savings or investments and on the earlier returns you've accumulated).
You know what they say, if you haven't experienced the sweet satisfaction of compounding returns - well - you haven't lived.
- Sisters Ali & Gaby Rosenberg are the co-founders of Blossom App.
- ACM co-owner Alex Waislitz has a stake in a company that provides services to Blossom. ACM is the publisher of this newspaper.
- Nothing in this article should be construed as being personal financial advice. It is general in nature only and has not taken into account your particular circumstances, objectives, financial situation or needs. You should consider whether the information, strategies and investments are appropriate and suitable for you or seek personal advice from a licensed financial planner before making an investment decision. Past performance does not indicate future performance. BlossomApp Pty Ltd (ABN 74 644 216 151) is a C.A.R. (No. 001284228) of Gleneagle Asset Management Ltd (AFSL 226199).
