Saving money is something we all want to do. But, many people don’t know the key tips necessary to get the best possible results from their savings. Whether you’re putting your money into a bank account or under your mattress, learning how to save money effectively is essential.
Keep it regular
You won’t save anything if you don’t actually put any money away. Sounds obvious – maybe it is – but many people misunderstand the importance of establishing a regular pattern of savings. There are even specific savings accounts that reward regular savers with enhanced interest rates.
Commit to saving a consistent amount on a regular basis. Regularly saving £10 a week will get you a better result than saving £25 only when you remember to do so.
Do your research
There are many different types of savings account available, all of which have their own benefits and drawbacks. Finding the right one for you relies on you getting out there and doing some research about what’s available to you, and what you’re going to benefit from.
It’s also important to know the organisation you’re entrusting your money to. Ideally see if you can find some reviews or comments of current customers, to check how they feel. It’s better to do this before you go to the effort of opening an account.
Establish your goals
What exactly are you saving for? A new car? A holiday? Home improvements? Or do you just want the peace of mind that comes from knowing you’re protected from a rainy day? There are many different savings goals you can establish – but whatever you choose, you have to commit to it.
If you have nothing specific you want, then you should aim to have a financial buffer for life’s difficult little moments. If you can save, and maintain, the equivalent to roughly three months wages, you’ll be well prepared for most difficult patches.
When it comes to savings, you should move your money regularly to get the most out of it. Many banks offer attractive initial rates, then rely on either loyalty or laziness to keep your money where it is. With the use of a handy comparison tool, however, you can keep a close eye on who is offering the best deals.
Contrary to the marketing materials, banks don’t actually reward loyalty. So, move your savings regularly to greener pastures.
Written by Steve Lewis
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