1. Protect yourself against inflation

You may not have thought it possible to lose money that you have in a transactional or savings account, but technically this is the case. Its all down to the rate of inflation verses the interest rate paid on your account. If the rate paid on your savings falls below that of inflation, your money will lose value, as inflation determines the cost of goods and services, and if these increase but your money stays the same then your savings will slowly erode.

This does not have to be the case. If you choose an account that pays a higher interest rate than the current rate of inflation then you can watch your money grow and have peace of mind in knowing you are not losing money. Compare transactional and saving accounts at Which4u

2. Choose the best type of account paying the highest rates to suit your lifestyle

If you are flexible enough with your savings to be able to lock them away for periods of time then it is worth considering term deposits. These accounts allow you to benefit from the highest rates available, making them very attractive to the savvy saver.

Term deposits – or fixed rate bonds, run for different periods of times which carry different interest rates. Ideally you should choose the term offering the highest rates. However, this may not suit all savers, as some terms run for several years and carry penalties for accessing your cash before the agreed period expires.

It is important to be aware of recent interest rate trends as if rates are following a pattern on the rise then you will be fixed to the rate agreed, so would not be able to benefit from higher rates that new customers would be exposed to. This can also work the other way, as if you lock in on a rate and shortly after rates begin to fall, you will not be affected and you will continue to earn the rate agreed until the account reaches its end date.

Compare term deposits at Which4U

3. Have your salary paid into a high interest savings account

By having your salary paid into an account paying high rates you can begin earning interest as soon as your money is in your possession. You can then manage your money by transferring it to your transactional account as and when required.

This may not be suitable for everyone, and requires you to be aware of all your outgoings to ensure you do not incur charges for late payments or attempting to pay a bill from an account that is empty so you need to be organised and stay on-top of your accounts. Compare savings accounts at Which4U

4. Set realistic saving goals and stick to them

People tend to do a better job of saving when they have a goal or a target in mind, such as a holiday that you can look forward to and appreciate knowing that the set target has been reached. Your daily state of mind is effected when you go into saving mode, as you become more aware of your spending and take more control of your spending habits. It helps you to become more money minded, allowing you to think more about ways in which you could be more efficient with your purchases, and other ways you could make more money to achieve your savings goal quicker.

It is very important to make sure your budgeting is realistic and something that you can stick to for the life of your savings plan. Make sure you have calculated all of your outgoings when estimating how much spare cash you have at the end of each month. Also, it is always best to add some extra money onto your outgoings in the event of unexpected expenses being required.

5. Always shop around when making purchases big or small

When you decide it's time to buy that new computer you've been looking for, or any other purchase for that matter, always compare prices in the market, as nine times out of ten you will be able to find it cheaper elsewhere. As well as searching the high street check online, as online stores can generally offer better prices as the companies that you are buying the items from have lower outgoings than a business that has to pay for things like rent and staff costs.

If you ever decide to take out a loan or finance deal for a purchase, make sure you have looked at all the options available to you and compare loans and finance deals before signing on the dotted line. Compare loans at Which4U

6. Cut unnecessary bank charges

Australia's financial services sector is constantly evolving as customer needs change and more competition enters the market, which is great news for us, as this naturally provides the market with better deals such as low or non existent bank fees.  

In the past, credit cards always came with an annual fee, but some credit card companies have now introduced low fee and fee free credit cards.

The credit card market is currently full of cards designed for a range of audiences. When one element of a credit card stands out to other cards such as no annual fee, it generally comes at a cost, so look at all the features to make sure the card will fit in with your lifestyle. Compare credit cards at Which4U

A number of transactional and savings accounts are also available with no fees, and as the rising competition has forced companies to constantly improve deals in an attempt to attract more business.

7. Use a credit card for every day purchases and earn rewards

There are a number of credit cards that offer a variety of different reward schemes offering cashback, airmiles, and discounts in certain retail outlets.

Credit cards have been given a bad reputation in the past, as they are seen as an easy way to get yourself into debt. However, this does not have to be the case, and if used sensibly can be a useful tool for being rewarded for your spending.

Reward credit cards generally provide users with a point for every dollar spent, which can be used for a range of rewards. The key to success with reward credit cards is to always make sure you pay off the balance in full and on time to avoid incurring interest fees and penalties.

This will effectively give you something for nothing, as the points you accumulate and exchange for goods or services can be obtained at no extra cost to you. Compare reward credit cards at Which4u

8. Review your mortgage to make sure it is the best option for your lifestyle

If you signed up for your mortgage in the past, it may be worth looking into whether you are still getting the best deal. Many things can change over time, a main factor being interest rates, but also peoples financial positions. For this reason you may wish to consider the following:

• Is your mortgage a fixed or variable interest rate? Is this still the most suitable type of mortgage based on your lifestyle?
• Are you getting the best possible interest rate?
• What features does your mortgage provide? Are they still required or are you repayments higher as a result of benefits you don't use?
• Are you charged monthly or annual service fees that could be avoided?
• Have you considered making additional repayments to be given the flexibility to access these funds when required at no cost?

These are all questions that should be asked, and if you think there are better deals to be had, consider looking at your options and start saving money today! Compare mortgages at Which4u

9. Avoid paying high unnecessary premiums on insurances

The golden rule which may seem obvious is to shop around for insurance:  Before renewing your existing policies or purchasing new cover, compare several competing companies to find the best rates. At Which4u we compare insurance companies side by side in our comparison tables to find you the best deals. Compare Insurance at Which4u

One way of reducing insurance premiums is by increasing the voluntary excess you wish to pay if you require a claim. This can have a significant effect on the cost, however, it can be risky as you would have to pay the excess if you make a claim which could amount to several hundred dollars.

10. Online Banking

Most financial institutions provide Internet Banking as standard, putting you in control of your account. You can access account balances, itemised transaction details, move funds between accounts, pay bills and much more. You also have the flexibility to manage your accounts 24 hours a day, 7 days a week.

By transferring funds & paying bills using Internet Banking you could save money and time, plus there are no fees involved with using Internet Banking.