According to a recent survey by ME Bank, many of us are concerned about having a lack of cash savings and more than one in three of us would struggle to come up with $1,000 cash if required.

Although savings rates are hovering at their highest levels, around 10%, there are still a large proportion of us who struggle to consistently save.

Let’s face it, it’s much more fun and motivating to save for an overseas shopping spree or your dream car but it’s just as important to create a steady savings plan to ensure you have a buffer of savings in case you need to call on it unexpectedly.

I know you’re thinking insurance will cover you in a real emergency and that may be the case but having your own stockpile of cash is far more practical, accessible and cost effective.

Here are some things to get you started when planning your saving for a real rainy day fund:

  1. If it’s easier for you to separate your savings by goal, open a savings account for each one – with so many fee free savings accounts on the market, this will maintain your good intentions without paying for it.
  2. Set up an automatic savings plan whereby small amounts are taken from your salary and directed to each of your savings accounts.
  3. Make sure you’re getting a good interest rate on your savings. A lot of providers offer very high introductory rates that drop after a few months. Mozo compare over 175 savings accounts which are broken down by promo rate, standard rate, fees, etc. so you know exactly which account will give you the best deal in the long term.

The ME Bank survey was conducted in June 2014 and is based on a survey of more than 1,500 Australian households.

  • having a goal, both short and long term definitely helps.


  • Thanks again, have been looking into interest rates.


  • Having a separate account for saving is the best idea. If you get into the habit to transfer some funds into it first thing every payday, you will get used to not having that money, and the savings account will grow. Set it up that it cannot be withdrawn by card or internet banking (ie you HAVE to go into the branch) and just wait for it to mount up.


  • It is important to look at your finances overall – if you have any other debt, look into having your savings sitting on your personal loan or home loan. Most accounts allow you draw back ‘extra repayments’ when you need it. The interest you save will be more than you would receive having it sitting in a ‘savings’ account.


  • thank u for that will have to try some of these


  • You definitely need to save for a “rainy day” We had a hot water service, washing machine and fridge all break down within 2 months. The gas hot water service was beyond repair (it burnt out and spewed boiling hot water all over our lawn-killed part of it) and it was cheaper to buy another washing machine and freezer than have them repaired. Labour and call out fees are very expensive. Then we were told that we had no reversing lights on the car – a fuse had blown. Changing the fuse was easy. Fortunately we didn’t incur a fine for that. Lucky our parents had taught us to save !!!


  • We’ve managed to save a fair bit to pay cash for a car for DD once she is ready to drive, it adds up over the years.


  • Good tips! Thank you.


  • This is something to think about


  • What great tips for those just starting on the saving road


  • Some great tips for starting saving.


  • This is me I’m hopeless at saving.. But I do try hard too


  • Coincident: Actually got a cheque today from NIB to be sent to the Gynecologist, still waiting for medicare though, but the hard and upsetting part is I will be out of pocket around $1,500.00 and we pay and have top private health cover. So hard to comprehend.


  • Great idea to check on current rates and to know the honeymoon period where you’re getting the highest interest.


  • I like the idea of separating accounts for different goals.


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