Saving Strategy | Jason Siu

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Jun 13, 2023 05:53 AM

333 Saving Method

Divide the average monthly income into three parts:

Savings

Daily expenses

Investment and financial management

Note: Save first after receiving your salary, instead of spending first! Always save 1/3 of your income and then allocate the remaining 2/3.

If income equals expenditure, it is easy to run out of money. If income equals savings, you will move towards wealth."

1234 Money-Saving Method

Key points:

Save 3-6 months of living expenses

Invest in social insurance and insurance for protection

Spend money on necessary expenses and emergency fund

Allocate 10%, 20%, 30%, 40% of income for short-term consumption, protection, money-making, and long-term savings

Create income for the family through stocks, funds, and real estate

Use steady income for education and retirement, such as education funds and increased life insurance

Also known as the internationally recognized Standard & Poor's Asset Allocation Rule, the method involves dividing monthly income into four parts:

10% for short-term consumption

20% for protective expenses

30% for investing to make more money

40% for long-term savings

12 deposit method

Put 30-40% of monthly income into fixed deposits every month. For example, if you deposit 1000 yuan per month for a year, you will receive 12,000 yuan in the following year.

The money deposited in the first month will become available for withdrawal in the thirteenth month, and the money deposited in the second month will become available in the fourteenth month. This cycle continues, and each month will have a fixed deposit maturing, forming a cycle that allows you to enjoy the benefits of fixed deposit rates while also having the convenience of a current account.

356-Day Saving Method

Start Date:

Save an extra 1 AUD every day

Annual goal: AUD 24,041

Get a table and write down the numbers 1, 2, 3, 4, all the way up to 365.

On the first day, save 1 AUD; on the second day, save 2 AUD; on the third day, save 3 AUD, and so on. Each day you save, cross off the corresponding number on the table. If you stick with it all the way, you will be able to save AUD 24,041.

The 52-Week Money Saving Challenge

The 52-Week Money Saving Challenge: Save $10 in the first week, $20 in the second week, and $30 in the third week. By the end of the year, after 52 weeks, you will have saved $13,780 if you stick with it.

Gambling Savings Method:

First, set up a plan:

For example, save AUD 2,000 each month, and save AUD 24,000 a year.

Then, make an agreement with a trusted family member or best friend that as soon as the salary is received, transfer AUD 2,000 to the other person.

If the money is not transferred as agreed, the other person can confiscate the previously saved money.

In this way, force yourself to save money, and the other person can also operate in the same way.

Step-by-Step Savings Method

Assuming you have 33,000 AUD per year, you can still use the step-by-step savings method to maximize your savings potential. Here's an example of how you can use this method with your yearly savings:

Divide your savings of 33,000 AUD into 5 equal parts, which would be 6,600 AUD per part.

Deposit the first part of 6,600 AUD into a 1-year fixed deposit account.

Deposit the second part of 6,600 AUD into a 2-year fixed deposit account.

Deposit the third part of 6,600 AUD into a 3-year fixed deposit account.

Deposit the fourth part of 6,600 AUD into a 4-year fixed deposit account.

Deposit the fifth part of 6,600 AUD into a 5-year fixed deposit account.

After the first year, renew the 1-year fixed deposit account and change it to a 5-year fixed deposit account. Then, after the second year, renew the 2-year fixed deposit account and change it to a 5-year fixed deposit account. Continue this pattern each year, and after 5 years, all of your fixed deposit accounts will mature into 5-year fixed deposit accounts.

By using the step-by-step savings method, you can earn higher interest rates on your savings and maximize your returns, even with a smaller amount of yearly savings.

Snowball saving method

Use the increase in life span to increase more than 3, and carry out revolving interest.

Example: John is 30 years old, deposits 100,000 per year, deposits for 5 years, and ferments through time