5 savings tips to help get you through the holiday season

With the end of the year almost here, you may be hanging up your Christmas decorations and looking ahead to your New Year’s resolutions.

A home deposit? Holiday? Rainy day fund?

While saving up during a time of high living costs can seem a daunting task, it’s certainly do-able by making some lifestyle adjustments. So let’s have a look at some expert tips to help you meet your savings target in the new year. 

1. Determine your savings goal

There are a few questions you may want to ask yourself first, such as the amount you’d like to save up, or how much you’d have to put away each week to reach your goals. 

Is your savings goal manageable based on your circumstances? Or does it need a bit of an adjustment? If you’re not sure, drawing up a budget is a helpful way to gain further insight into your finances. 

2. Set a budget

A budget can be pretty useful as it gives you an overview of your finances so you know exactly where your money is going with each transaction.

And there are a myriad of ways to keep track of your finances - check it out:

• Old-school budget diary. Taking up the pen-to-paper approach means that you’re more aware of every expense made from your bank account.
• Budget spreadsheet. Using a program to draw up your budget spreadsheet will usually generate an automatic calculation of your incomings and outgoings, giving you a better idea of whether you’re in the red or in the clear.
• A budgeting app. Some apps allow you to link your bank account to the app, making it easy to track your finances at a glance.

3. Limit your spending

Now that you’ve got a budget drawn up, you might notice some areas where you can rein in your spending, such as:

• On restaurant dining or takeaway. Food delivery services tend to charge delivery and service fees while marking up the cost of dishes. By eating more meals at home, you may be able to save some dollars (plus, it’s probably healthier too)! 
• Streaming services or memberships you don’t use. For example, let’s say you have a monthly gym membership fee of $55 along with a streaming service that charges $23 each month. But maybe you’re not using them! You could be saving a total of $936 in a year by cutting out services you don’t use.  
• Retail spending. The cost of clothing and the latest tech can quickly add up, and limiting your spend in this area could help you reach your goals faster. 
• Utility bills. According to Mozo’s Cost of Energy Report for 2023, there are potential savings to be found when you switch energy providers. 

4. Take advantage of specials to save money

Whether it’s retail or groceries, there are savings to be found when you’re out shopping. For example, supermarkets tend to offer some good discounts this time of year!

Likewise, if you’re looking to buy electronics, clothing or sports gear, you may want to consider making a list of items to target in sales. In some cases, you might find your desired product at a discounted price, and doing your shopping at the right time means you’ll be able to benefit from these deals.

5. Review your savings account

Speaking of savings, it’s a good idea to check whether your savings account is still right for you. Currently, there are some rates as high as 5.70% p.a. on savings accounts!

What’s the result of a good rate? Well, if you were to lock away $10,000 for a period of 5 years at an interest rate of 4.60% p.a., you could earn up to $2,580 in interest. Meanwhile, for this same amount of $10,000 over 5 years, a 5.70% rate would earn you $3,289 in interest - a difference of $709!

Just bear in mind that there are usually conditions you’ll have to meet in order to benefit from the full interest rate. It’s important to do your research and shop around. 

Compare savings accounts

Getting a jumpstart on your savings goal in the new year? Have a look at some of the best savings accounts our experts have tracked this month, or compare your top picks below!