Where Should my Savings Go?

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.

March 25, 2003

Spring Clean Your Finances

It is good practice to give your finances an annual ‘clean out’. Not only with you get things in order, you may be able to take advantage of new deals and save month at the same time. Here’s a few steps to follow:

    1. Get a better deal. If paying off your credit card debt is more of a priority than reward points, switch to a low interest rate car.


  1. Spot check your savings and investments. Collect statements from all of your savings and investment accounts and check them against last years to see how much they have changed. Then review them against your goals to see if they are still appropriate to your goals.
  2. Put some order into your money paperwork. If you haven’t already done so go out and buy a portable file or some folders and put all your bills, bank statements etc in an ordered filing system. It will take a bit of getting used to but once you get into the habit you won’t know how you survived beforehand.
  3. Monitor your mortgage. Run your eye down all of your statements and see if all payments etc are being put into your account properly. While you are there check out how many years you have to go before you pay off the loan. It may also pay to have a chat to a mortgage expert to see id there are nay better deals at that time as well.
  4. Check up on your health insurance. Compare your fund with the others in the marker and if you can find a cheaper alternative (for the same cover as you have now) and take it.
  5. Clean up your home insurance. Check to see if all your insurances are paid up and cover everything you think they cover you for.
  6. Ring up about a new phone deal. Don’t get mad at your phone bills – look for a better deal. Now with number portability in place there are great deals on offer so if you sport a cheaper deal take it.
  7. Get an update on your superannuation. With a great deal of activity happening in the superannuation industry it is a good idea to run your eye over your super statements. Make sure your current superannuation account includes the amounts from your previous jobs super policies.
  8. Re-check your goals. Things change and so do your needs and wants which therefore affect your goals. During your spring clean make it a special point to re-check your goals and if need be change them.

From Unlock the Secrets of your Money Personality by Greg Smith.

Unlock the Secrets of your Money Personality is a kick-up-the-bum for anyone who knows they should be sorting out their finances, but does know where to start. Through identifying your existing money habits and suggesting strategies for increasing savings through budgeting, investing and most importantly, learning about money, Unlock the Secrets of your Money Personality can transform you into a knowledgeable, money-savvy chick well on her way to financial independence and security.

September 17, 2002

How to Make the Most of Your Money?

Spend wisely, save steadily and manage your money like a mogul! Find out more top tips for making the most of singledom, in Sue?s great book Get On With It.You have a good relationship with your bank account if you:

  • Regularly transfer money into a locked savings account.


  • Distribute your money to your needs first, and your wants second.


  • Plan and budget in advance when you want to make purchases.



  • Address money drains as soon as they become apparent ? e.g. unreliable car, huge mobile phone bills, excessive clothes

You may need a financial overhaul if you:

  • Regularly spend more than $50 on drinks in one night.


  • Find that you?re always counting down to payday.


  • Make more than one or two impulse purchases a week.


  • Make expensive purchases when you know you can?t afford them.


  • Plan and budget in advance when you want to make purchases.


  • Spend over $10 a day on lunches.


  • Find you buy a lot of stuff you don?t use


  • Rely on your credit card as a source of cash flow


  • Shop till you drop every payday.

from Get On With It the sassy new book for independent single women by Sue Ostler (Allen & Unwin). Learn to love your own life, develop your career, take control of your finances and enjoy everything you want!

Buy a copy of this book from the SheSaid BookShop.


July 16, 2002