Another new exciting change launches today for SmartyPig in our brand new Savings Smarts section! This is where you can go to get handy hints on the best bit about saving – the things you’re saving for.

There are a few major categories, including Travel, Home Renovation and Electronics for you to have a read through. If you think something is particularly helpful – or have your own tip to share – you can add a comment on any of the articles.

Hope you enjoy – and learn a thing or two about Saving Smart!

Cosmetic changes

We’ve gone horizontal! You might notice everything on the homepage is just a little wider than yesterday and we’ve got a delightful new banner showing off all the people that like us on Facebook. We’ve played around with our sections a little, so hopefully everything is just a bit clearer for you. You can now pick how you receive our emails too – Standard or Detailed and HTML or Text. So many choices!

Funding Source Verification

Now, when you add a new funding source, you’ll need to verify it by confirming a tiny amount that we direct credit and debit to your account. We usually suggest you do this right at the start of your goal, but any time before you redeem is fine – has to be before you want to stop your goal though!

We’ve updated our Electronic Identification process

We’re going to ask you for a little bit more information, so hopefully you don’t need to do anything else because we’ll have confirmed who you are. We’ll ask you for things like:

• Passport Number
• Drivers License Number
• Medicare Card Number

You can pick and choose what you want us to check, but the more you tell us the better chance we have of identifying you.

And finally…

And last but not least, now, when you sign up, your first account is set up automatically. This means fewer forms to fill in – Win!

See, not so scary! So let us know what you think – and maybe suggest some more changes for next time.

Team SmartyPig

Savings lessons you learnt the hard way. Advice that your loving parents gave you is all well and good, but it doesn’t really compare to the stuff that you worked out for yourself, does it?

So here it is, hot off the press, from me to you (insert other tension building cliché here). Set and forget. Three incredible simply words – magic even.

OK, there is no actual magic way but automatic payments are the easiest way I’ve figured out in reality. Splitting that wonderful paycheck just a little, so that your savings never quite make it into your oh-so-tempting ‘Spending’ account.

Yes, the first week or two you do this hurts. You think, why is it that last week I managed to buy two pairs of brand new shoes and a skirt and this week I’m counting coins for my morning latte (or – for the not so shoe inclined among us, video games)? But the next week, you kind of just go on like the week before, and before you know it you’re thinking – “Shoes, what shoes?!”

Maybe this is an exaggeration. You’ll still be thinking about the shoes (or video games. No judgment here). BUT you’re probably less likely to whip out your card and cry gleefully “I’ll take a pair in both colours”. And then, after a few weeks you’ll look at that savings account and think “Hey – THAT’S where all those pairs of shoes went! Maybe next week I’ll buy a pair”. And the funny thing is, next week tends to come and go, and you forget that the money is there. That’s the brilliance of this ‘set and forget’ caper.

Now I know you’re probably thinking “yeah, yeah, Liz – the modern miracle of internet banking pretty much makes that glorious idea redundant”. If you’re struggling, there is nothing better than putting that ‘set and forget’ in a different account, that isn’t linked to your internet banking. (Like, for example, I don’t know, this cool little thing called SmartyPig?!). That way, there is no temptation right there, no instant transfer ability while you’re in the line to pay.

Any advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you. ANZ recommends you read the Terms and Conditions and the Financial Services Guide before acquiring the product.
The SmartyPig account is a deposit product offered by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ is trading as “SmartyPig”. “SmartyPig is a Trademark of SmartyPig LLC, which is licensed to ANZ.

At the time I remember thinking how ridiculous it sounded – I was about to get my first weekly paycheck, and it was already burning a hole in my pocket. But after a few weeks of getting to the end of a paycheck and getting cash out at the supermarket so that I could get to the last $8 in my account, I decided that perhaps this savings caper had merit.

Since then, I’ve always tried to save a little of my pay. Some weeks that might mean the bare minimum, but other weeks that may mean more than normal. But I’ve always tried to make sure I save some of it. I’ve been reasonably successful at achieving this part, but this whole ‘saving for savings sake’ thing still doesn’t quite fit with me.

I like to have a tangible outcome for my goals. Be it a holiday, a new pair of shoes or a splurge on an extra special cheese (that’s right – shoes & cheese, my weaknesses). I then like to see a physical product of that goal – be it my holiday photos, the cute outfit I’ve planned, or the actual wheel of cheese (OK, alright, I’m sorry, I just really love cheese!).

However, in deference to my ever-wise Dad, I’m going to have a go at doing something that’s a little more challenging for me. I’m going to set up a brand new SmartyPig goal. And I’m going to call it ‘Saving’. I’m going to set the goal amount to the maximum ($100,000 – for those playing at home) and I’m going to put 5% of my salary in it. And I’m going to try really really really hard, to not mentally put that amount towards my house deposit – and just save.

As your new resident blogger I’ll keep letting you know how this brand new venture goes. And while I step away to set up my new goal, I’ll ask you to help me and each other out: What was the first piece of advice about saving you ever got?

Any advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you. ANZ recommends you read the Terms and Conditions and the Financial Services Guide before acquiring the product.

The SmartyPig account is a deposit product offered by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ is trading as “SmartyPig”. “SmartyPig is a Trademark of SmartyPig LLC, which is licensed to ANZ.

We’ve all read tips and tricks like this to improve our saving habits and whilst I agree with them in principle, many of the regular suggestions require me to cut back on things I consider necessities. Don’t get me wrong, I am well aware that I will not suffer any dire consequences if I do not have my morning coffee on my way to work, but the lack of a morning caffeine boost will result in the replacement of my bubbly and delightful morning personality with an irritable and confused grump – something that no one wants to endure.

So I find myself at an impasse, I would like to make small changes to my lifestyle in order to achieve a large financial reward but I find it very hard to give up the little things that make daily life more enjoyable i.e. my necessities.

So I have done what all good movie characters do when they can’t make a decision, I wrote a list.

I wrote down all purchases I made in a month, big and small and categorised them into the following groups; ‘Can’t Get Out of Paying It, As much As I Would Like To’, ‘Shouldn’t Be a Necessity But It Really Is’ and ‘Like Having It but Probably Could Go Without It If I Have To’.

Can’t Get Out of Paying It, As much As I Would Like To:
This is the section for your bills, public transport costs, petrol, rent/mortgage payments and grocery bills. All the things that you have to pay for if you would like to maintain a lifestyle that includes the modern comforts of a home, food and electricity.

Shouldn’t Be a Necessity But It Really Is:
I tried to be as ruthless as I could in this section, but I am not going to deny who I am (dramatic, I know). In this section I included – morning latte at the coffee shop, Pay TV, Friday night drinks after work and my monthly magazine subscription.

Like Having It but Probably Could Go Without It If I Have To:
These are the items that I purchase out of convenience and if I spent additional time organising myself I could avoid unnecessary spending. Buying my lunch at work, going out for breakfast on Sunday or catching a cab home if I work late are all examples of things that I can avoid doing in order to save a little extra cash.

I admit that old habits die hard and I’m not going to completely eradicate these purchases and behaviours immediately. However, from now on I will try to be more conscious of my ‘Like Having it But Probably Could Go Without It If I Have To’ spending and hopefully my bank balance will improve.

But wait. It’s not my wedding?

Ask anyone who has planned a wedding and the first piece of advice they will impart is to save, because weddings are expensive. There is a raft of things you wouldn’t consider having to pay for until you are chest-high in wedding magazines planning your special day. To make matters worse, as soon as you put the ‘W’ word in front of anything the price seems to magically increase.

What you don’t often hear is – if you are part of the bridal party, their special day is also expensive for you too.

Don’t get me wrong, I wouldn’t change the opportunity to stand beside a friend or family member on their special day for anything. What I will change in the future is how I plan for it.

Depending on your bride and groom you might have to pay for everything, nothing or somewhere in between. For the typical bridesmaid your expenses might include:

• The dress
• Shoes to match the dress
• Make up for the day
• Jewellery
• Hair
• Nails
• Spray tan
• Hens day
• The wedding present

Even if you only allocate $50 for each one of those expenses (which is a conservative estimate in my experience!) you are looking at $450 per wedding and some of these costs will sneak up on you (unless you are a regular on the bridal party scene and you know what to expect).

So next time I have the honour of being someone’s bridesmaid, I’m going to plan ahead, because as soon as someone mentions the ‘W’ word, everything gets expensive.

Consider if this product is appropriate for you. ANZ recommends you read the ANZ Terms and Conditions and Financial Service Guide before acquiring this product.

The SmartyPig account is a deposit product offered by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ is trading as “SmartyPig”. “SmartyPig is a Trademark of SmartyPig LLC, which is licensed to ANZ.

I can say with pride that I am more organised for the Christmas Day spend than any of my other annual financial events. I buy presents for; five family members, four friends and the odd gift or two for me, none of which goes onto my credit card. However, as soon as December 25^th ticks over to the next day, all my financial planning goes out the window for the one time of year I always neglect to plan – the seven days after Christmas until New Years Day. (I realise that isn’t exactly twelve days after Christmas but, for the sake of a snappy title, lets go with it.)

This year, my seven days after Christmas were no where near as extravagant as the original carol, but despite the lack of lords-a-leaping and turtle doves, it still seemed to make a significant dent in my bank balance. On a slightly related note: I suspect the person who gifted all the gifts from the original carol had been saving for a long time (perhaps something to aspire to?), and I hope for the recipient’s sake they had a great returns policy, because who really needs ten pipers piping?

To demonstrate my excessive spending I’ve prepared an abridged version of “My Seven Day’s After Christmas” for you below:

On the first day after Christmas my statement told me – I’d spent $50 on a taxi (this is the only purchase I could make rhyme so I HAD to include the full verse)

On the seventh day after Christmas my statement told me I’d spent -

• $300 on an impromptu night away
  
• $250 on Boxing Day sales
  
• $150 on a New Years event
  
• $118 on a festival
  
• $80 on Boxing Day test tickets
  
• $75 on a night out for dinner
  
• $50 on a Taxi
  

That is $1,023 spent in one week on entertainment only.

During any other time of the year, if I intended to spend that much money I would always try and plan for it, but for some reason that week is my black hole for good spending behaviour.

So in honour of my attempt to make 2011 my year of financial responsibility, this year I’m going to try to avoid my financial black hole by starting a new goal in my SmartyPig¹ account for those seven days after Christmas, so that next year maybe I can afford that partridge in a pear tree I’ve always had my eye on….

Mac

Consider if this product is appropriate for you. ANZ recommends you read the ANZ Terms and Conditions and Financial Service Guide before acquiring this product.

¹ The SmartyPig account is a deposit product offered by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ is trading as “SmartyPig”. “SmartyPig” is a Trademark of SmartyPig LLC, which is licensed to ANZ.

As mentioned last week, I am a Gen Y. I have grown up in the age of many great things – slap bands, the rise, fall and subsequent re-birth of leggings, Alf, Happy Meals and The Karate Kid. But somewhere along the way, I, along with many of my fellow Gen Y-ers picked up some fairly nasty financial attitudes. As described in aforementioned article I “want it now – or not at all” and worst of all:

I am not afraid of debt. But I know should be. (Insert ‘dun dun dun’ scary music here)

Debt has all the trade marks of a bad hair cut (strangely enough, I fear this above all else) and yet I still continue to do it:
• It is visible (from the haggard look on my face when I open my next credit card bill)
• You can’t hide from it (no matter how infrequently I look at my balances) and;
• It can take a long time to get rid of (30 seconds to spend it, 3 months to pay it back).

Thankfully, my “necessities” debit is manageable but still far from perfect.

So what have I done about it?

A little over 12 months ago, I began an experiment. I wanted a Chanel handbag above all else; I was willing to put myself into debt to have that super soft leather bag as my own in all it’s glory. But in the spirit of showing support for the product I manage, and a little negative reinforcement from a male friend (“you want to spend HOW MUCH on a bag?!”) I decided to save for it. Every month I put $244 aside for my dream bag until June last year when I hit my goal amount.

Do I have my dream handbag I hear you ask? Is it everything I had hoped and dreamed? Is the leather really that soft? Well, to be honest, things didn’t actually work out how I had planned…

I was more than ready to transfer my money out of my SmartyPig goal, march down to the local branch and withdraw the funds. But I didn’t. I decided to think about it for one month, then two and so on – it seemed much hard to part with my money for something frivolous when I had worked for it. So I have kept my money in my goal, accruing interest, growing a little each month, and for that I feel a small sense of pride.

Although in the grand scheme of things, it is only a small win for my reluctant saver self, it is a win never-the-less. I now know, that I can save, that purchases that seem like a good idea at the time, might not always be and that I can achieve a sense of pride from saving. So next time you want to buy something a little frivolous, give saving for it first a go, and you might find it wasn’t what you wanted at all.

Finally, for those of you wondering – does the positive bank balance make me feel better than walking down the street with a Chanel handbag? I guess I will never know….

1 Apologies in advance to any male readers, as this blog has taken a definite female-skew for this week. Perhaps replace “Chanel handbag” with, “Playstation 3” and you will get the idea.

The SmartyPig account is a deposit product offered by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ is trading as “SmartyPig”. “SmartyPig is a Trademark of SmartyPig LLC, which is licensed to ANZ.

Apologies – you are going to have to look up the definition yourself, because my friendly-resident lawyer has advised me that I cannot insert a direct quote from Webster’s Dictionary into my blog.  But I’m confident that if you Google the definition it will suggest alternate descriptions such as; evade spending, reduce consumption, cutbacks etc.

They sound logical.  However, I thought a few descriptive words were missing, so after a quick survey around my office, I’ve found that savings means more to most people.  Alternate descriptions suggested were: responsible, difficult, the means to a greater goal, a constant source of guilt, something to be proud of, irritating and a little boring (the last is my contribution, in case you were wondering).

So why do it?

I can only speak from personal experience (and please respond with your perspective, because I need all the saving inspiration I can get) but I save for two reasons: 90% ‘means to a greater goal’ – I want a house, I love to travel, I want to be able to retire before I am too old to enjoy my free time and I want the assurance that should something go wrong, I won’t have to worry about money too.  

The remaining 10% is guilt – every time I swipe my card at the ATM I can hear my mother’s voice: “when I was your age I had to save for 3 weeks to buy my favourite record”, yet I can make a $30 purchase decision in zero to 30 seconds.  And that is my guilt right there.  I should be more careful with my money, I should value it more, but I don’t.

Unfortunately, to add complexity to my saving mission -I also want “stuff” – music, DVDs, clothes, shoes and a big night out with friends.  All of these things cost money, and regrettably (for me) money isn’t an endless resource.

Now we arrive at why I am talking about it.  I’m 26, smack in the middle of Gen Y – the generation of Australians who are too often accused of having a ‘spend now, pay later’ attitude to life – and I manage SmartyPig on behalf of ANZ, so I have a voice to generate some good PR for Gen Ys.   I will admit upfront that I am not an expert saver (but those who can’t do, teach right?), but what I can do is share my journey of ‘the reluctant saver’ becoming ‘the successful saver’ (fingers and toes crossed please!) and share the tips and tricks I learn along the way.  I’ll also reveal a bit of what is happening in our world of SmartyPig and bring you a different perspective on finance articles from around the world.

So, if you can stick with me throughout this journey, I’ll try and bring a little bit of humour and fun to the world of finance and SmartyPig.

Mac aka the reluctant saver

The SmartyPig account is a deposit product offered by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. ANZ is trading as “SmartyPig”. “SmartyPig is a Trademark of SmartyPig LLC, which is licensed to ANZ.

Consider if this product is appropriate for you.  ANZ recommends you read the Terms and Conditions and Financial Service Guide before acquiring this product.

The saying goes, a change is as a good as a holiday. For those of us not going on a holiday any time soon, we’ve made some changes to our website. You can get back to us on what you think of the changes.

So what have we done? Well we’ve listened! Yep, we’ve taken on board the feedback we receive from our SmartyPig customers (thanks!) and made some changes. Here are some highlights, we hope you like them.

Site makeover
We’ve given the homepage a bit of a makeover, updated some of the names and labels we use on the site and hopefully made it easier to find the information you’re looking for.

More savings options
Making regular contributions to your savings goal is a great way to stay on track and reach your goal sooner. Now, you can set up automatic transfers from your nominated bank account to your SmartyPig goal(s) once a month, twice a month or every fortnight.

If you want to use SmartyPig for a fundraising event or as a gift registry, that’s now even easier, as you can select to not make regular contributions at all while still allowing others to contribute to your goal!

Get social
New Twitter and Facebook features expand our existing social media options. You can now securely connect your existing Twitter or Facebook profile to a savings goal that you’ve chosen to share with friends and family. SmartyPig will then automatically post updates to your Twitter or Facebook account every time funds are added toward meeting your goal.

Share money between goals
If you have more than one savings goal underway you can now transfer money between your goals. This could come in handy if your goal deadline is fast approaching, say for a winter holiday, and you need to top up this up from another goal you have which is just about saving for savings sake.

Cant choose where you’d like to shop?
The fun bit. Can’t decide which retailer to redeem your goal with? Don’t fret, you can now choose to split the money you’ve saved between retailers and nominate how much you want to redeem with each. So, say you’re saving to buy your Christmas presents this year, once you reach your goal you can choose to redeem your gift cards across multiple retailers like Myer, JB Hi-Fi and Target. How good is that?!

New to SmartyPig? You can complete your registration in more places
If you’re signing up to SmartyPig for the first time (or want to encourage someone you know to do so) and for some reason our online verification doesn’t work as planned, you now have a number of ways to complete your application:
• If you’re an ANZ customer you can call the SmartyPig customer service team and they’ll register you over the phone
• If you’re new to ANZ, print out the PDF feel free to visit any one of our branches
• You can continue to send in your paperwork to us

We love feedback so please send us yours at support@smartypig.com.au.

Until next time

Team SmartyPig