In the last quarter Australian households have saved $20 billion.

According to the Australian Financial Review that’s 10 times as much as the same period in 2005.

And that was even more than the June 2002 quarter, when it was a negative savings rate.

So what has made Australians so keen to save?

Well it can be largely attributed to the credit crisis that hit in 2008, despite deposit interest rates declining during that time.

I feel the credit crisis caused a great deal of uncertainty. Especially for baby boomers who withdrew their money from shares and managed funds.

And because you could get 5 – 6% pa interest with savings in the bank, government guaranteed, (the government guaranteed accounts up to $250,000 until February this year) this became a better option.

Normally a lot of money would have flowed from the stock market to the property market, however as both were underperforming, cash became king.

Another factor could have been that Australians saw their Government run up large deficits. Which means, as taxpayers, we know our taxes will go up in the future to pay for it.

(Interesting fact: this theory is known as the “Ricardian Equivalence”.)

For the banks, the increased savings of Australians has been a blessing, allowing them to rely on less offshore funding for loans.

Personally I think the credit crisis has created a cultural shift in Australia.

Where a higher savings rate will become the norm – not just for baby boomers scared about retirement – but also the younger generation, forced to save so much more for a house deposit.

Over the last decade I’ve been teaching hundreds of thousands of Australians a simple truth:

All outstanding investors… are outstanding savers.

I used to be THE WORST saver around! Up until 17 years ago…

You see, one day my millionaire mentor asked me:

“How much are you saving?”

And I said, “Umm ahhh…I’m not. You have to understand, my business has collapsed and I’m sleeping on my friends couch and – ”

He cut me off abruptly.

And said, “If you can’t save money, you can’t live your dreams.”

That one line sunk deep into my subconscious and was a turning point in my life.

He said, “I thought you said you were committed. Don’t waste my time. If you’re not saving, you’re not committed.”

I went to make excuses and he simply told me, “You can make excuses or you can make money. You can’t do both, so make up your mind.”

At the time I thought he was rude, rich bastard!

However, his advice was true. And it challenged me to wake up and stop making bullshit excuses.

If one is going to be financially successful: one either does, or does not.

Just like Yoda said to Luke Skywalker:

“Do or do not. There is no try.”

Just like financial success and saving. There is no try. Do or do not.

So I left that conversation. Stopped making excuses why I wasn’t saving and starting saving like crazy!

It was the first and most important step that led me to becoming a self-made millionaire in my 20s. Despite starting from the brink of bankruptcy and sleeping on my mate’s couch in Sydney.

So let me ask you:

How much are you saving?

And are you telling yourself stories of why you can’t?

Remember: if you can’t save, you can’t live your dreams.

In my Top 5 Investment Strategies For 2012, savings comes in at number 5.

In order they are:

1. Landbanking

The 21st Century way

2. US Property

15 to 20% net rental returns secured by real estate

3. Selling Insurance on the stock market*

The 21st Century way, like John Thompson

4. Share Renting*

5. Cash in the bank earning 5 to 6% pa

It’s always good to have a back up… and a great place to park your money while you’re learning about the listed investment strategies.

Sadly, too many people neglect the strategies above and instead rush for speculative, “Get Rich Quick” trading strategies, which without long-term dedication generally end in tears, with many giving up on investing entirely.

Speculative strategies like Eminis and Forex trading, CFDs, and so on, are for a small portion of your capital; and generally after you’ve implemented the strategies above that, in comparison, have a high degree of success.

Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator. www.jamiemcintyre.com

Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator. http://www.jamiemcintyre.com

Author Bio: Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator. www.jamiemcintyre.com

Category: Society
Keywords: 21st Century Education,Australia,budgeting,credit crisis,debt,Financial Education,resources,saving