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Money



Finance professionals spend their careers helping others manage money, but what personal saving strategies do they use themselves? We've gathered practical money-saving tips from banking experts, financial advisors, and loan specialists to help you build better financial habits and potentially reduce your need for credit.

These aren't theoretical concepts from textbooks. These are real-world strategies that finance professionals use to manage their own money effectively. Whether you're looking to build an emergency fund or simply want to stretch your budget further, these insider tips can help you make smarter financial decisions.

Note: These are general strategies and may not be suitable for everyone’s circumstances.

Automate Your Way to Success

Set up automatic transfers on payday

Finance professionals know that  a practical savings plan is one you don’t have to think about. Sarah Chen, a personal banking manager from Melbourne, automatically transfers $200 to her savings account every payday before she can spend it.

"I treat my savings like a non-negotiable bill," Sarah explains. "The money moves to savings before I'm tempted to spend it on something else. After three months, I stopped noticing the difference in my spending account."

Use the 24-hour rule for purchases over $100

Many finance workers swear by this simple delay tactic. Before making any non-essential purchase over $100, wait 24 hours. For larger purchases over $500, extend this to a week. This cooling-off period helps you distinguish between wants and genuine needs.

Master the Art of Comparison Shopping

Compare personal loan rates before borrowing

When you do need to borrow money, finance professionals emphasise the importance of comparing options. Even a 1% difference in interest rates can save hundreds of dollars over the life of a loan.

"I always tell clients to compare personal loan rates from at least three different lenders," says Marcus Thompson, a loans specialist from Brisbane. "The same applies to my own finances. Shopping around for the suitable personal loan options saved me $800 in interest charges last year."

Before taking out any personal loan, consider factors beyond just the interest rate. Understanding personal loan fees can help you identify the true cost of borrowing and avoid unexpected charges.

Negotiate your recurring bills annually

Set a calendar reminder to review and negotiate your insurance, internet, and utility bills each year. Finance professionals often secure better rates simply by calling and asking for discounts or comparing competitors' offers.

Build Strategic Financial Buffers

Create category-specific savings goals

Rather than one large emergency fund, many finance professionals create smaller, targeted savings accounts for specific purposes: car maintenance, home repairs, holiday gifts, and medical expenses.

"Having separate buckets for different expenses means I'm never caught off-guard," explains Jennifer Liu, a financial advisor from Sydney. "When my car needed new tyres, I had the money set aside rather than reaching for a credit card or considering a personal loan."

Use the 50/30/20 rule as a starting point

This budgeting framework allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment. However, finance professionals often adjust these percentages based on their personal circumstances and financial goals.

Note: Percentages can vary depending on personal circumstances.

Make Your Money Work Harder

Take advantage of high-interest savings accounts

Many finance professionals keep their emergency funds in high-interest savings accounts rather than standard transaction accounts. The difference might seem small, but it adds up over time.

Consider the total cost of convenience

Those small convenience purchases—expensive coffee, meal delivery apps, premium streaming services you rarely use—can add up to hundreds of dollars monthly. Finance professionals regularly audit these expenses and find alternatives.

"I calculated that my daily coffee shop visits were costing me $1,800 per year," says David Park, a credit analyst from Perth. "I invested in a good coffee machine instead. The upfront cost paid for itself in four months."

Note: The example is for illustrative purposes only.

Smart Borrowing When You Need It

Understand your credit position before applying

If you do need to borrow money, knowing your credit score helps you access better rates. Finance professionals recommend checking your credit report annually and understanding how your credit score affects personal loan eligibility.

Consider loan terms carefully

When comparing personal loan interest rates, don't focus solely on the lowest rate. Personal loan repayment terms significantly impact your total repayment amount. A slightly higher rate with shorter terms may result in lower total repayments, depending on loan terms and personal circumstances.

Even if you have a low credit score, options exist. Finance professionals suggest focusing on improving your credit position while exploring suitable lending options.

Start Implementing These Strategies Today

Finance professionals succeed with money because they treat financial management as an ongoing process, not a one-time event. Start with one or two strategies that feel manageable, then gradually incorporate others as these become habits.

Remember that everyone's financial situation is different. What works for a finance professional earning a steady salary might need adjustment for your circumstances. The key is finding sustainable approaches that fit your lifestyle and income.

If you're currently considering borrowing options, take the time to compare personal loan rates and deals from multiple lenders. This simple step, recommended by finance professionals themselves, may help reduce costs over time.

Disclaimer: This information is general in nature and does not take into account your objectives, financial situation, or needs. Consider whether it is appropriate for you before making financial decisions. Econnex may not compare all lenders or products in the market. Commission may be received for referrals.