Australians have big savings goals in 2016, with a holiday a greater priority than a home

THE new year is set to be a bumper year for Australians to stash cash — but what’s at the top of most priority lists may surprise you.

EXCLUSIVE

THE new year is set to be a bumper year for Australians to stash cash — and top of the priority list is saving for a holiday ahead of a home.

The Westpac 2016 New Year Resolutions Report has found Australians plan to save a massive $21 billion in 2016 — or an average of about $11,230 each.

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And a majority of Australians concede the biggest driver for saving this year will be so they can go on a travel adventure (53 per cent), followed by saving for a rainy day (46 per cent) and buying a home or doing home improvements (40 per cent).

Annemarie Gallard, 25, is setting out a plan of attack to save to buy her first home in 2016. Picture: Bob Barker

Some of those surveyed in the report had multiple savings goals.

Westpac’s head of consumer deposits Elliot Smith said while it’s all well and good to set out to save in the new year, immediate action needs to be taken to achieve this.

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“You need to be clear on your goals, whether it’s a trip to the US or a family holiday or saving for a house you have to be really realistic and start with a plan,’’ he said.

“You will surprised what balances you grow when you save a really small amount of money and start on a regular basis.

“A lot of people set unrealistic expectations and get really disappointed after the first four weeks or two months.”

The report found 85 per cent of Australians who had savings resolutions for this year had a specific target.

Smith said opening up a separate bank account and tucking away money for a particular savings goal was a good way to start and also directing direct debits into these accounts.

Consumer finance expert Lisa Montgomery said cutting out unnecessary expenses is a good way to save. Picture: Supplied

Communications employee Annemarie Gallard, 25, hopes to kickstart a savings plan in the new year to save for her first home.

“My partner and I have been talking about buying a house for a couple of years, we’ve been renting and we want to save a certain amount every month,’’ she said.

“We are hoping to save about $50,000 so it will mean cutting out buying takeaway and shopping for new clothes.”

Consumer finance expert Lisa Montgomery said reviewing your finances before you start a savings plan is critical.

“Do an audit of your finances so you can work out what’s coming in and what’s coming out,’’ she said.

“Take a look at your transaction account and see if there’s anything you are paying for now that you aren’t using anymore, for example a gym membership.”

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