How to save for anything

11:36AM, Jun 9, 2010
Learn how to cash-crunch effectively and you could soon have….

…A $400 BAG
"First things first, do not put it on your credit card," says Katrina Pulbrook, senior financial planner with ANZ. "Putting it on lay-by is a good option as you can pay it off weekly."

CASH CRUNCH: "If you’re not on a huge salary, you have to replace one luxury with another to avoid racking up debt. Work out how you could free up $50 a week in order to pay for the bag."

"Withdraw your weekly cash in one go. This will keep your expenses in check and save on ATM fees," recommends Grant Hackett, former Olympian and relationships manager at Westpac.

…A $1500 HOLIDAY
"Open a high-interest saving account," suggests Hackett. "Start off by putting your yearly bonus or a chunk of your next pay rise straight into the account. Then set up direct debiting, so as soon as you’re paid, a portion of your salary is immediately moved to the savings account."

CASH CRUNCH: The Cosmopolitan lifestyle survey revealed most of you earn up to $64,000 a year, which means you could be bringing in around $3500 a month. If you make an initial investment of $500 into a savings account with 5.4 per cent interest, such as UBank USaver, and lodge $100 each month, that’s $1762 in a year.

"Online accounts often offer the best interest rates," says Pullbrook.

"Work out your expenses and how much you can save each month by using a budget planner at," says Hackett. "Each month, put your extra cash into a long-term account. These accounts lock your money aw3ay for about three years so you’re not tempted to dip into it.

CASH CRUNCH: Save $250 a month in a term-deposit account with an interest rate of 6.25 per cent, like ING Direct. That’s $10,195 in three years.

If you don’t plan to buy for four years, set up a First Home Savers Account. Save $1000 a year to get a government contribution of 17 per cent. See for more details.

A glass of bubbles in a bar costs about $7 a glass, so six glasses cashes in at $42. Instead, buy six bottles online for $29.95, plus $9.95 delivery, and save $2! See for details. Your saving stats:

- 1 in 5 Australian women spend their whole pay packet every month.

- 58% have less than $5000 in savings.

- 33% have less than $1000 in savings.

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