By finance journalist Melissa Wilkinson

Given that most people expand their lifestyle to fit their salary, saving for something special can be tricky. If you’re trying to save for a new home, car or holiday, there are a number of easy strategies you can use to reach your goals sooner.

One of the best ways to successfully save is to use a proven planning technique based on SMART goals. You need to create goals which are
Specific, Measurable, Achievable, Realistic and Time-bound. Interestingly, the research also suggests that people who set goals and work toward them are happier and feel more successful.

Is your goal specific?
The most effective way to start any savings program is to have a clear picture of your end goal. Are you saving for an overseas holiday, your child’s education or a deposit to start a share investment portfolio? You’re more likely to stick to your savings plan if you have a clear picture in mind. For example, a general goal would be ‘save for a holiday’. A specific goal would be ‘save $25,000 for a holiday to Antarctica with my family in 2009’.

Is your goal measurable?
Without a specific goal, it’s hard to know when it will be accomplished or even how much money to start putting aside. Once you’ve got a clear idea about how much you’d like to save, you can work out how much to save on annual, monthly and weekly basis. Regularly measuring your progress is also a powerful way to stay motivated and on track.

Is your goal achievable?
While it’s good to have dreams, your goals also need to be achievable in the time frame that you’ve set. It needs to be within reasonable reach otherwise you could be setting yourself up for failure.

How realistic is your goal?
If you’re trying to save $25,000 this year but you’re only earning $40,000, then your goal is probably not realistic. You will need to make some cutbacks in your lifestyle but if you’re too restrictive, it’s unlikely to work in the long run. The key to saving is sticking to your plan and also remembering to enjoy life at the same time. A big goal is also often easier to reach because it is hard to get motivated about a small goal.

Can your goal be timed?
To stay motivated with your savings plan, you need a defined start and end period. Without a clear time frame to achieve your goal, there's no sense of urgency.

Some practical saving tips include:

• Set up a budget so that you know exactly what’s happening with your finances and where you can trim expenses.
• Set up a dedicated high interest savings account for your goal. There are a number of different options available including online savings accounts and term deposits.
• Pay yourself first by arranging regular deductions straight from your pay packet into this account. It’s highly likely that you won’t even miss the money after a period of time.
• If you get a bonus or a raise, put these funds straight into your savings account.
• Review the fees on your bank accounts to make sure that you’re getting the best deal possible. By consolidating your accounts, you’re likely to save on fees and charges.
• Use fee-free services where possible and avoid writing cheques if there are charges involved.
• Check if your mortgage package is still the right one for your needs. You may not need some of the additional features that involve a higher interest rate.

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We all know that our health is our most important asset... without it life can be pretty miserable. But it's important to realise that if you do lose your health, whether temporarily or permanently that you have protected the other assets in your life.

Consider this: if you earned $50,000 a year for 40 years your income asset would be $2 million. You insure your car, and we'll bet it isn't worth $2m, so why not insure your income?

For those who are employed you may have sick leave and workers' compensation to provide some protection, however if you are self-employed your income might stop if you have to.  If you are close to retirement, you may be able to access your superannuation or you may have sufficient financial reserves to tide you over.

For many, the loss of your income-earning capacity could lead to financial ruin, so what can you do to protect yourself and your family?

• A waiting period before the income is paid – the longer the waiting period the lower the premium.
• How long the income is paid for – the longer the benefit period the higher the premium.

Income protection insurance is available through many superannuation funds. Things to look out for are the waiting period - as this can be set for a longer period inside super, and  make sure you can select the benefit period – check that you can choose whether you’ll receive an income for 2 or 5 years or to age 60 or 65. 

Generally though, you’ll find a much more "one size fits all" approach inside super and if you find this doesn’t meet your needs, much more flexibility and tailoring is available with personal policies.

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• Signing your credit or debit cards immediately and never letting anyone know your PIN.
• Keeping credit card slips and checking them against your statements.
• Changing your PIN and internet password often.
• Reporting lost or stolen credit cards immediately.
• Keeping your personal details and bank account details secure.

However, here are some other ideas to consider:

• Take out all the contents of your wallet or purse and copy it all – back and front. Keep the copy in a safe place (not in your wallet) together with the phone numbers of your banks and credit card issuers. Now you are prepared to report a loss quickly.
• Sign your credit card and print in bold letters next to your signature "Requires photo ID". This will prevent the thief using your card in shops (but not online or over the phone).
• Put a lock on your mailbox to prevent mail being stolen.
• Report stolen property to the police. This shows credit providers you were diligent and it enables an investigation to start.
• If you lose a credit card and are concerned someone may have stolen your identity, report the details to the 3 major credit agencies (see details in the box). If anyone tries to get credit using your ID, the credit provider will contact one of the agencies and find out about your report. They will contact you personally.
• Ensure your bank and credit provider have your up to date contact information. Computer systems are becoming more sophisticated and banks can often detect unusual buying patterns. If they can contact you promptly, they will be able to put a stop on the card.
• If you buy over the internet, have a credit card with a low credit limit just for that purpose. This will put a cap on how much can be stolen.
• If you are asked for your driver's licence as ID show it but don't let anyone write the details down. Your licence is a de-facto national ID card.

The growth of electronic banking has provided thieves with new avenues to separate you from your cash and credit. Common sense and vigilance can reduce the risk of it happening to you.

Source: Baycorp Advantage

Some good tips on surviving the flu season without too much pain.
It doesn't matter where you live in Australia - from hot, steamy Darwin to the breathtakingly cold Hobart - it's almost impossible to escape catching a cold or flu during the winter months. The old saying, "prevention is better than the cure" is paramount to everything we do in life, so here are a few tips on staying healthy when everyone around you is succumbing to the dreaded lurgy!

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