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Most millennials don’t have a savings plan. Here’s how to build one – The New Daily

Most millennials don’t have a savings plan. Here’s how to build one – The New Daily

Hugh chatted with Matthew Elmas of The New Daily to discuss and share some knowledge and insights about Millennials, budgeting, goals, and savings plans.

According to The New Daily, new research from Commonwealth Bank shows a worrying 61 percent of Australians aged 24 to 39 do not have a regular savings plan, and 14 percent said they live pay cheque to pay cheque.

The same survey also found that more than half of millennials (58 percent) intend to buy a home within the next five years.

So, in other words, most millennials want to buy a house but aren’t sticking to a dedicated savings plan to make it happen.

The New Daily talks with our very own Hugh Robertson on some tips to help bridge that gap.

Excerpt below

Once you’ve got a goal, Hugh Robertson of Centaur Financial Services said budgeting and saving tools can help you organise a savings plan.

But don’t forget the basics, either.

“You need to firstly understand where all the bills are, then technology can wrap it all up and consolidate it nicely for you,” he told TND.

Goals, check. Spending tracker, check. Now you need to work out how much of your income you want to spend and how much to put away.

There’s a sweet spot between saving enough to meet goals before your retired and being so frugal that you have no fun, Mr Robertson said.

A common strategy is to try to save about 20 percent of your income.

There are a few savings no brainers you’ll also want to get on top of.

First, make sure you’ve got a separate savings account, preferably one with a higher savings rate than your everyday one – free money, folks.

Better yet, consider setting up an automatic transfer to an account in an entirely different bank, Mr Robertson said.

“It could be in an online bank, because you’re not going to need to access the money,” he explained.

Mr Robertson said that one of his secret strategies to saving has been to get a handle on his priorities.

“Find things that are important to you, and then feel free to spend money in those areas,” Mr Robertson said.

“Spend there, but don’t spend on things that aren’t a high priority.”

Click here to read the full article

For more information on Centaur’s budgeting tips, click here.

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