According to recent ABS data*, the household saving ratio^ in Australia increased to 19.8% in the second quarter of 2020 from 6.0% in the first quarter of 2020 driven by record fall in household consumption.
^The ratio of household net saving to household net disposable income.
When looking to build and maintain wealth over your lifetime, it’s important to understand the positive effects associated with regularly saving a portion of your income each payment cycle. For some of us, saving may be second nature or come easy due to circumstance, while for others, it may be more of a struggle. What’s important to remember is that you are the source of your wealth creation.
With a clear picture of why you need (or want) to save, as well as the motivation and roadmap to achieve your savings goal, you may find that this makes all the difference. Given this, in this animation, we illustrate the concept of SMART savings goals.
*Australian Government, ABS. (2020). Australian National Accounts: National Income, Expenditure and Product. Reference period, June 2020.