Savings Success Studies

Despite the fact that money is an everyday part of life, money management skills and learning how to save is rarely taught at school. Instead, we're left to learn our financial skills from our parents and from the media. Most people end up teaching themselves about money through experience. Without proper guidance, however, it's very easy to develop bad money management habits.

Learning how to save is especially difficult in a culture which encourages spending. “Buy now, pay later�, “Zero interest, no payments�, “Fast and easy credit approvals�—it's no wonder that financial hardship is at epidemic proportions in Australia and savings are at an all-time low.

But no matter what your situation, you can take control of your finances and start saving.

People of any age can learn how to save.

Bob and Judy of Elizabeth East in South Australia joined MyBudget in 2007 because, in Bob's words, they'd gotten in over their heads with credit cards and loans. Outstanding debts were stopping them from retiring and pursuing their dreams. Read how MyBudget helped them get their finances in order and showed them how to save for the road trip of a lifetime:

Like many of our clients, Bob had a good job and a long, solid work history. He's a Vietnam veteran who spent 20 years in the services—twelve in the navy and eight in the air force. He and Judy have been married 42 years; they have three grown up sons, seven grandchildren, and a host of four-legged family members. They're kind, cheerful, big-hearted people.

Shortly after joining MyBudget, Bob's mum passed away. Not only did Bob have to deal with the sadness of losing his dear mother, but his modest inheritance complicated his financial situation - because of a potential increase in assets, Bob's creditors wouldn't agree to a debt settlement. This is when Suzanne, one of MyBudget's team leaders and debt agreement experts, stepped in. Suzanne liaised with Bob's lawyer about his inheritance and, on Bob and Judy's behalf, negotiated reduced settlements on all of their cards and loans without affecting their credit rating.

Two years later, all but Bob and Judy's mortgage is paid off and they've planned their retirement, which includes an indefinite road tour of Australia. They've bought themselves a big silver bus that they're busy outfitting before they hit the bitumen in the coming months.

I asked Bob where they plan to travel first and his reply was “any direction we feel like on the day�.

“I can't say enough about MyBudget. We saw MyBudget advertised on the television and we decided to give it a go. It was one of the best things we ever did. Aside from our mortgage, all our bills are paid off and we've been able to retire.� –Bob and Judy, SA

Read Bob and Judy's full story.

High income earners also need help learning how to save.

It's not only low income earners who fall into financial difficulty and don't know how to save. People with big incomes often have high expenses and lavish lifestyles. It doesn't matter how high your income may be, if there's more money going out than coming in, it means they're going backwards.

Jody from Chirnside in Victoria had a six-figure salary package, but she overused credit and lived beyond her means. Read how MyBudget showed her how to save and get ahead:

Despite receiving a job promotion that came with a near six-figure salary package and included a company car, Jody had gotten herself into a position where her expenses significantly exceeded her income. “I realised I was never going to get ahead and I didn't know who I could talk with,� says Jody. “I was paying one credit card with the other and this was going on month-to-month,� explains Jody. “Friends thought I was living the high life with all the latest gadgets and things, but I was basically living beyond my means.�

“I was embarrassed and guilty that it had got that far. I couldn't talk to my fiancé because we had already had too many fights about money. And I didn't want to talk to my parents because I felt like I had let them down.� The idea of disappointing her father was especially painful for Jody. Her dad is battling the final stages of cancer and she doesn't want him to worry about her future.

Jody decided to call MyBudget after hearing an ad on the radio. “I was sceptical at first,� laughs Jody. “And I was nervous about laying my life out on the table. But the experience was brilliant. Everyone at MyBudget has been so friendly. I feel so comfortable with them, and living on the budget they created for me has been pretty easy. I've made other changes, too. I've started taking my lunch to work and, if I go out for drinks with the girls, I just have a couple of drinks and go home.�

Since joining MyBudget, Jody has paid off two high-interest loans and a credit card. MyBudget has helped to negotiate lower interest rates on Jody's remaining debt and she is saving money every month. “The best bit,� Jody tells me, “is that I sat down with my dad last weekend and told him how I was budgeting and getting ahead. I haven't seen him smile so hard in such a long time. I feel like I've done him proud.�

Read Jody's full story.

MyBudget shows single income families how to save.

Being a sole parent is tough and even harder when money is tight. But it is possible—even with limited income and family commitments—to learn how to save.

Single mother of two, Lisa-Ann of Perth, Western Australia, describes MyBudget as her “invisible husband� because we provide her with the tools and support she needs to get her through the financial demands of single parenting. Read how Lisa-Ann learnt how to save for her family's future:

Lisa-Ann spent most of her life in South Africa before moving to Perth in 2002 with her husband and six year old daughter. Lisa-Ann's husband was working for a mining company in the far-north, while Lisa-Ann was working as a nurse in the city. They were getting ahead financially and were enjoying life in Australia.

But time apart took its toll on the relationship. After being in the country for only two years, the marriage broke down. Lisa-Ann was suddenly a single mum with no local family or long-time friends to help her. She began working permanent night duty because the money was better and she managed to scrape by for a few years. “My troubles really started in 2007,� Lisa-Ann tells me. “My credit cards were maxed out and I had to move house because my landlord had decided to sell the place I was renting. My car insurance was due, my phone was in arrears, and then I hurt my back in a car accident and I couldn't work for a while.�

“It was a horrible time,� continues Lisa-Ann. “Credit card companies were chasing me. I was afraid to answer the phone. I wasn't sleeping properly. I thought ‘why do I have to deal with this on my own?' Sometimes I couldn't even afford the basics—things like toothpaste and toilet paper. I felt like moving back home [with my parents in South Africa] where I wouldn't have the pressure of being the family provider. I didn't want to be the person who was responsible for everything on my own.�

Lisa-Ann says that she approached MyBudget cautiously. “I really didn't like the idea of giving my income to MyBudget, but I felt really good after the initial interview—especially when they told me that they'd deal directly with my creditors. It was such a relief.�

Lisa-Ann now has savings behind her and is planning a trip to South Africa to visit her family. When asked how she feels about her financial future, Lisa-Ann's reply is extremely honest: “Some people aren't good at managing money and I'm one of them. MyBudget takes the pressure off me and it's so comforting. I just have to make sure my income's coming in and they take care of the rest. Honestly, I don't think I'll ever leave MyBudget.�

Read Lisa-Ann's full story.

MyBudget showed these people how to save and we can show you, too.

Learning how to save starts with a free consultation where we will assess your financial situation in detail. As well as analysing your income and expenses, we closely examine your debts and savings goals. Even if you decide not to proceed with MyBudget, your customised budget plan and our recommendations are yours to keep for free.

At MyBudget, every single budget plan we create includes a savings plan. No matter what the client's level of income or debt, every MyBudget client has a ‘how to save' strategy in place from day one.

We start by helping you build savings to cover emergencies and life's unexpected hurdles. You may not be able to save a great deal at the beginning, but as you begin to pay off your debts we'll show you how to save increasing amounts of your income for other goals, special events or projects—Christmas, birthdays, anniversaries, overseas holidays, a house deposit, a new car… What would you like to save for?

Start learning how to save today. It starts with a free, confidential consultation.

A free consultation with MyBudget is an opportunity to gain deep insights into your financial situation and all of your options. Even if you decide not to become a MyBudget client, the budget plan we prepare for you is yours to keep at no charge.

Change doesn't have to be difficult. The first step is always the hardest, but in this case it's as simple as making a phone call. Take the step today to get out of debt and start saving. It'll be the best decision you've ever made.