1 – 31 AUGUST 2023

Maximise your money in your 30s: 7 – 11 August

Day 4: Be smart not frivolous with these saving tips

As you enter your 30s, financial responsibilities may start piling up – from saving for a house deposit, planning a dream holiday, or starting a family. At the same time, temptations to indulge in frivolous spending and take on unnecessary debt are ever-present. To build a strong financial foundation, it’s crucial to save smartly and minimize frivolous debt.

Challenge yourself to save smart and not be frivolous with these practical tips from expert financial advisers:

Split your income: save before you spend

Save smart by splitting your income before you get it in the hand by asking your employer to split your pay across multiple accounts. Create separate accounts for various saving goals, such as a house deposit, a holiday fund, and a Christmas fund. Set up automatic payments on payday to transfer money into these accounts. This way, you won’t even see the money in your everyday account and be tempted to spend the money on unnecessary purchases before saving for your goals.

By making saving your top priority as soon as you receive your income by putting money into your savings accounts first, you build the habit of consistently saving and moving closer to your financial goals. Chances are that if you don’t prioritise saving, you’ll pay your bills and do your weekly spending and then most likely some unexpected spending, perhaps a few treats and then before you know it, there’s nothing left over to save.

Start small and build consistency

Begin your savings journey with a small amount that you can comfortably set aside each payday. This approach allows you to get into the habit of saving without feeling overwhelmed. As you become more comfortable with regular saving, consider gradually increasing the amount you save to accelerate progress toward your goals. You want to be able to save enough to move towards your goal, but not so much that you have to borrow money at high-interest rates or miss any debt payments.

Minimise frivolous debt: avoid Buy Now, Pay Later traps

While buy now, pay later schemes may offer short-term gratification, they often lead to accumulating unnecessary debt. Resist the temptation of impulsive spending and try to save for things outright instead. Before taking on any debt, consider the importance of the purchase and whether it aligns with your long-term financial goals.

Ideally, you avoid Buy Now, Pay Later entirely and wait until you have the money to buy it outright, but if you really need to use Buy Now, Pay Later, read this article on on how to do it safely.

Think before borrowing on credit cards

Borrowing on credit cards for non-essential purchases can lead to a cycle of mounting debt and high-interest rates. Challenge yourself to save for these purchases instead, so you can buy them outright without incurring debt.

Escape the debt trap and prioritise debt repayment

If you already have debt, tackle it strategically to minimise its impact on your finances. Prioritise paying off high-interest debt first to avoid accruing additional costs. Missing repayments can lead to late fees and higher interest charges, exacerbating the problem. Aim to become debt-free as soon as possible so you can focus on building your savings.

If you do have multiple debts, check out these useful resources to get out of debt fast.

By implementing these smart saving strategies and avoiding frivolous debt, you can secure your financial future and enjoy peace of mind. Remember, the earlier you take control of your finances and adopt wise money habits, the more successful you’ll be in achieving your long-term financial goals.

Seek guidance from financial advisors to make informed financial decisions and stay on the path to financial success. With discipline and prudence, you can set yourself up for a bright and financially secure future.


Top tips contributed by:

Vanessa Belton | Financial Adviser
Ph 027 222 4449

Anita Aitken-Taylor | Financial Adviser
Grad Dip Bus Studpfp prm,  CFPcm, CLUcm
Ph 021 849 097

Looking for expert help?

Search the Financial Advice Member Directory to find a quality financial adviser.