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Ask Paul: What should I do with my savings?

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Dear Paul,

I work part-time in the hospitality industry, where I am not guaranteed to get a set number of working hours or fortnightly pay coming into my bank account.

To try and save money while still paying my bills, what should I do with the small amount of money that I get? - Sam

Ask Paul What should I do with my savings

I am glad you are thinking about saving, Sam. I don't think a lot of people realise how important it is to get into the habit of saving.

Also, small, regular amounts grow over time, giving you a range of investment options in the future.

With small amounts, my advice would be to transfer these to a separate high-interest account. I just checked out what I am earning on mine and I see it is 4.7%.

This is a nice rate of interest, but the most important thing here is to separate your savings account from your day-to-day account so you can see your savings grow.

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Paul Clitheroe AM is the founder of Money and serves as the publication's editorial adviser. One of Australia's most trusted personal finance experts, Paul has spent decades helping Australians build wealth, manage debt and make smarter money decisions. He is widely known for host­ing the Money TV program and authoring best-selling personal finance books. Since launching Money in 1999, he has played a leading role in delivering practical, independent financial guidance to Australians. Paul is chair of InvestSMART Financial Services. He was the founding chair of Ecstra Foundation, a national not-for-profit focused on improving financial wellbeing, from 2018 to 2026, and led the Australian Government's Financial Literacy Board and Financial Literacy Australia from 2004 to 2019. In academia, Paul is chair in financial literacy at Macquarie University, where he is also a Professor in the School of Business and Economics. Ask Paul your money question. Due to volume, Paul cannot respond to questions posted in the comments section.
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Money magazine
November 27, 2024 4.32pm

*EDITOR'S NOTE*

Paul Clitheroe is unable to respond to questions posted here in the comments.

Click here to ask your question: https://www.moneymag.com.au/co...

David Close
November 27, 2024 11.31pm

As long as you make a monthly contribution and no withdrawals, there are several banks still paying over 5% for personal savings accounts