SmartyPig

So last week I told you all about the first bit of savings advice I got. You can read it here. It’s totally brilliant – I promise. So this week, I’m going to continue on with the theme, but this time take a slightly different, long and winding road. And that is… (long and quiet drumroll that I can only hear in my head)…

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.

When I got my first job – my Dad gave me a piece of advice that no matter how much I earn, I should always save 5% of my pay. Not for anything – just to save.

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.