Savings seems to be a word that needs to be turned on its head. The financial services industry wants to give us plenty of reasons to save with them but their track record especially during the credit crunch showed that some financial services companies cannot necessarily be trusted. Let’s think about how much someone can save in their lifetime and how this can be done:
- Top tip 1: Have a standing order to funnel cash to your savings account
You should have an automated process that helps you put cash in an account, especially for savings. Quick loans can be deposited in a current account, but savings should have their own dedicated account. This is to encourage you and all savers to continue saving without dipping into reserved funds.
- Top tip 2: Have a concrete number that you want to save
Whether you want to save $100,000 or $10,000, you should have a number that you don’t waver from in order to keep saving. Unsecured loans online also go up to those high amounts but it’s always better to have money that you have saved yourself. Once you have chosen a concrete number, ensure that you are saving at least each month.
- Top tip 3: Change your lifestyle
If you want to make savings a priority, you need to assess how you live. If you are a spender as opposed to being a saver, you have to do something every day that encourages saving. This includes going shopping less and being frugal with your household expenses.
- Top tip 4: Have different ways of saving
A cash account is not the only way that you can save. Other ways include a Roth IRA account and bonds. You should have diversified ways of saving because you need to hedge risks that come with saving such as problems in the financial services market that affects the interest rates a bank offers to its savers.
With the world’s economy only just starting to repair itself, saving has become the most important tool in your financial arsenal.