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From Get That Home Deposit by Peter Cerexhe.No, no, no! If there is one thing I can say to you with absolute passion, with almost violent intensity it is this: don?t leave your savings in your everyday bank account. The money will disappear as though taken by magic.

There are a number of mystical money rules:

  • When you put your car in for repairs the bill will always be more than the quote.
  • When the bank says its fees won?t be going up it will find other ways to charge you.
  • When your son or daughter says ?All I need is $50? it will not be all they need.
  • Junk food costs more than good food and takes longer to get.
  • When a restaurant bill is divided in equal proportions around the table, you will end up paying more than you ate.

And of particular relevance here:

  • Your bank account does not build savings, it devours them.

When I say ?bank? I?m really including most financial institutions, not just banks. And I?m not blaming them. These everyday transaction accounts give you, the customer, great freedom of action while keeping your money safe from robbers or from simply falling down the back of the couch. You can ask for your money at any time. Just go to an automatic teller or the branch; log on at the institution?s website or use phone banking to pay the bills and transfer money. Such freedom of access comes at a cost. I don?t expect an everyday bank account to actually make money for me.

And you can forget about the interest they pay you on your savings – it is almost nothing at present. Placing money in a daily banking account is not ?saving? it. It is the first step towards losing it.

In all probability the money will be spent on worthwhile, even important things like paying household bills or buying the heater you need with winter coming on.

I can see a worthwhile purchase every time I cross a shop floor. Indeed there have been many times when I have bought things at such great discounts that I have saved literally hundreds of dollars through astute shopping. But I?ve nearly gone broke saving money like this. A dollar spent is a dollar gone. Forever.

When I put money into my bank account I know I must get it out and invest it somewhere else fast or it will disappear.

From Get That Home Deposit by Peter Cerexhe ($19.95, Allen & Unwin).

Get That Home Deposit is a practical guide to raising a deposit to buy your own home in 2 years. Your own home. Has a nice ring to it, doesn’t it? Think how great it would be to come home to your own place at the end of the day and know that it’s yours.

If you’re after some sure-fire tips for reducing spending, and more importantly – increasing savings – don’t miss Get That Home Deposit.

Buy this book from the SheSaid Bookshop.