A financial adviser and mother who has saved over $117,000 by following her own financial challenge has revealed the seven steps to boosting your savings fast.
Canna Campbell, from Sydney, devised the ‘$1,000 Project’ five years ago in a bid to boost her personal savings and investments.
The project requires the saver to break down large financial goals like a deposit, investment or credit card debt into ‘bite-size financial chunks’ of $1,000.
Every time $1,000 is saved, it should be moved over towards your financial goal.
Canna shared the seven steps to help you get started with the $1,000 Project, and said following them will without doubt boost your bank balance significantly.
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A financial adviser and mother who saved over $117,000 by following her own financial challenge revealed the seven steps to boosting your savings fast (Canna Campbell pictured)
Canna Campbell (pictured), from Sydney, devised the ‘$1,000 Project’ five years ago in a bid to boost her personal savings and investments
1. Come up with one financial goal
The first thing you need to do if you’re doing the $1,000 Project is devise just one financial goal.
‘Choose a goal that will alleviate stress but that will also excite you,’ Canna said in a YouTube video on the subject.
‘If you have credit card debt, I recommend you deal with that first.’
2. Open up a dedicated savings account
Once you have your financial goal in mind, it’s time to open up a second dedicated savings account that will only house money that is for this financial goal.
‘It’s very important to make sure the account is separate, because you need to be able to see it grow as you manifest money, and when it’s quarantined, you won’t be tempted to spend it,’ Canna explained.
3. Give the account a nickname
Once you have your savings account set up, you should give it a name.
‘You can name it either the $1,000 Project Account or according to your financial goal, such as My Credit Card Reduction Account,’ Canna said.
‘Making sure it has a name will keep you focused and motivated to keep saving.’
The financial adviser (pictured) said you should find new ways to create more savings and earnings in your life where possible
4. Find ways to create more savings and earnings
Now, it’s where the fun begins.
The financial adviser recommends you look at any ways you can create more savings and earnings in your life:
‘Look at your budget and have an open and honest conversation as to where your living expenses are at,’ Canna said.
‘You might be able to reduce or cut out expenses that don’t add value to your life. For example, you could take your lunch to work every day of the week and save $60 per week.’
You can also look at how you could make some extra money, whether it’s through selling something, doing some babysitting or completing online surveys.
What are some good ways to boost your savings?
* Dog sitting
* House sitting
* Online surveys
* Weekend work
* Pay rise/bonus
* No spend weekend
* Take lunch to work
5. Use the savings and earnings proactively
Once you have your savings goals in place, you need to use any earnings from them proactively.
Canna used the example of the $60 you could save from taking your lunch to work from Monday to Friday.
‘At the end of each day or week, transfer the $60 to your nicknamed account,’ she said.
By doing this, you are removing the temptation to spend the money elsewhere and moving instead towards your financial goal.
6. Take action when your savings hit $1,000
The moment your savings hit $1,000, Canna said you should do something.
‘If your goal was to pay off the credit card debt of $5,000, then the moment your savings hit $1,000, you should transfer it onto your credit card debt,’ Canna said.
Once you’ve done this, make a note that your debt is down to $4,000 and start again.
The moment your savings hit $1,000, Canna (pictured) said you should do something, and use it to get rid of some of your debt or accumulate some savings
7. Use the $1,000 Project to evolve with you
Finally, Canna said that just because you have paid off what you set out to do with the $1,000 Project, that doesn’t mean the challenge has to stop.
‘If you’ve paid off your credit card debt, then it might be time to build up your emergency savings,’ Canna said.
‘The great thing about this challenge is that it should grow with you and help your financial goals.’
To find out more about Canna Campbell, you can visit her YouTube channel here.
Source: Daily Mail Australia | World News