How can I manage my money better?

Answer

Managing your money better is all about making the right choices. The choices you make about how to spend your income can affect whether or not you meet your financial goals.

Thinking in cash buckets

A good place to start is to sit down and work out where your money is going. To make this easier, think in terms of ‘cash buckets’ for different expenses.

So you might have buckets for:

  • day-to-day spending on groceries, petrol and entertainment
  • regular payments such as your mortgage, insurance premiums and utility bills
  • long-term goals such as holidays, a new car or your retirement.

Once you’ve worked out where your money is going, you can start making better, more informed decisions. AMP’s budget planner can help you understand where your money goes and focus on your goals.

AMP Saver account

You can then put a savings plan in place for your long-term goals. It’s easy to fall behind if you’re not disciplined, so it can be a good idea to treat your savings like any other bill by setting up a regular automatic transfer to a savings account on the day you get paid like the AMP Saver account.

AMP Saver account is designed specifically as a high ‘at call’ interest rate account linked to your everyday account. This makes it harder to succumb to temptation and dip into your savings but you can still access your funds quickly when required.

Becoming a smart saver

There are plenty of quick and easy money saving tips to help you achieve your goals sooner.

  • write (and stick to) a grocery list
  • pay your bills on time … and avoid late payment fees and interest
  • take your lunch to work
  • cancel memberships you don’t use
  • pay your credit card in full every month and try to only use it in emergencies
  • plan how often you will eat out within your budget and stick to it
  • give up expensive habits such as smoking.

And don’t forget to set some money aside in an emergency fund to deal with any surprise expenses.

 

Important information

Show more

It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.

The credit provider and product issuer of AMP Bank products is AMP Bank Limited, Australian credit licence no. 234517. AMP Saver Account Terms and Conditions.