Saving: A Different Approach Author: Con Koulouris We all have financial goals to meet. These goals can quickly become needs. It’s always better to save and pay upfront rather than going into debt such as with a credit card. The problem is: how can we save for short-term goals as well as long-term goals, while still paying our bills? Consider this example: Adrian is a young person saving for his first home. From his weekly salary of $1,400, he wants to save $600 per week to raise a deposit. When a friend asks him to join on a holiday to Bali at the end of the year, Adrian is sorely tempted. The flights, accommodation and travel expenses come to $5,000. Adrian calculates he will need to put aside an extra $115 per month to afford the trip. Adrian takes the following steps: He opens a new bank account only for holiday saving. This will help streamline the process so he knows what money is being put aside for what purpose. He reviews his current expenses and finds he can cut back by

• Cancelling his Foxtel
• Eating out less
• Catching public transport to work and avoiding parking fees
• Spending less on alcohol
• Quitting smoking
• Cancelling the gym membership he doesn’t use
• Ensuring his credit card is connected to a point system – this can help with flights
• Selling any items he owns but hasn’t used in twelve months
• Ensuring his credit card is cleared each month before interest is accrued
• Becoming better at shopping, eg. looking for specials when buying groceries.

After doing all this, Adrian finds he can save $160 per week. As a bonus, he purchases a money box to collect this lose change. After a year, this saving amasses $2000! Incorporating a short-term goal into your savings plan is not as hard as it seems. For any budgeting help, call us on 03 9908 3390.             Amega FS Disclaimer: ASCK Pty Ltd (ACN 105 450 566), trading as Amega Financial Solutions, is an authorised representative and credit representative of AMP Financial Planning Ltd, Australian Financial Services Licensee 232 706 and Australian Credit Licensee 232 706   General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.   Case Study Disclaimer: The Examples is illustrative only and is not an estimate of the investment returns you will receive or fees and costs you will incur.