When it comes to being prepared for whatever life might throw your way, a savings plan can help to provide stability for managing your finances. So, whether it’s being ready for those sudden emergency expenses or making a major purchase such as a home or a car, regularly paying into a savings account can make all the difference.
Taken from our downloadable eBook: Improving Your Financial Health: 8 Money and Credit Management Tips, our Savings Plan – Save Emergency Money for the Future guide highlights a number of valuable tips for ensuring your finances remain in great shape.
Save Emergency Money for the Future
The best way to protect yourself and your family from any potential financial shocks is to save for your future. It’s much easier than you think to start saving. In the same way that spending small amounts every day can accumulate into surprisingly large sums, if you start saving small amounts of money on a regular basis, before long you may be pleasantly surprised to see how much you have accumulated. When you track your spending, if you find one thing (like a daily coffee) that seems a little wasteful or extravagant, you could try cutting it out and saving that money instead – and see how far you get.
Why Being a Regular Saver is Important
Regularly putting your money into a savings account is important for plenty of reasons, not least because it will leave you better prepared to tackle many of life’s big events, such as:
- Emergency money: Saving for an emergency may not be at the top of everyone’s priorities, but when that day does come, having a savings account to dip into without touching other savings can be a real relief.
- Retirement: Whether paid into a pension pot, ISA, or other savings plan, putting money aside for your retirement will help to make life that little bit more comfortable come the day you finish working.
- Holidays and other luxuries: Putting cash aside for the future doesn’t always need to be about the less exciting aspects of life, it can also be about something exciting, such as a holiday or a luxury item. Having something fun to look forward to as you put your money aside can be a great way of maintaining your savings focus.
- Family events: Occasions such as birthdays, anniversaries and Christmas can often see our monthly budgets stretched. Regularly putting money into a savings plan will soften the impact of a big celebration on your finances and will help make those days left until the next payday a little less difficult.
- Peace of mind: Having savings stored away can also help to prevent a lot of unnecessary worries. When faced with a difficult period, such as an illness or the loss of a job, having that extra money to cover bills and other expenses can be a real help in keeping those stress levels down.
Whether it’s saving for your first home or having a little extra cash should something like the car breakdown, regularly putting money aside into a savings account always helps. Luckily, there are a number of straightforward tips to help your money grow:
- Start saving as soon as possible: It goes without saying that the earlier you start putting away, the more you’ll have, but once you take into account the interest as well, it all starts making a noticeable difference.
- Open a separate savings account: A separate bank account from your day to day account will help to keep those savings safe and reduce the risk of accidental spending.
- Schedule automated savings: This can be easy to do with internet accounts and banks will often offer better rates for regular saving plans.
- Find a specific reason to save: Having a goal to work towards with your saving can help you to keep your focus when saving as you work to make those dreams a reality.
- Decrease the savings amount, increase the frequency: When saving, ‘little and often’ can regularly work best in the long run as those small amounts quickly build up yet often go unnoticed.
- Avoid unnecessary expenses: Unnecessary expenses like penalty fees for late payments, impulse purchases when you can’t afford it and interest on accounts will all hurt your savings.
Saving up for those big things in life can seem rather daunting, but by regularly putting money aside you could soon have a healthy-looking amount stored away for reaching those goals. If you want to learn more great money saving tips, then download our eBook Improving your Financial Health: 8 Money and Credit Management Tips now.
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