Saving money is something we should all do, for all of the goals we have ahead of us, both in the short and long-term. If you haven't started saving your money yet, here are some simple tips to get you started.
Know what you are saving for
When you know what you want, you will have the incentive to start putting money into your savings. Whether it's a brand new motor, such as the new Mercedes G-Class, or a future holiday with your besties, work out the cost involved, and then use it as a target to aim for when saving your money.
Work out your expenses
When you know how much you are spending each month, you will have a better overview of your finances. This will help you to curb any bad spending habits if you are going over budget, and give you a reason to look for ways to save money. Then when your paycheck comes in, you will know how much of it you can put aside for your savings. Download one of these apps to help you budget effectively.
Manage your savings
Your savings are multipurpose. While they will go towards a new car or a luxury holiday (or some other such purchase that you have set your heart on), they can also go towards longer-term goals, such as a nest egg for your retirement (no matter how long away this is). And there are those emergency situations to consider too. Therefore, portion any excess money you have into savings for both your retirement and luxury goals, and put some of your money into an emergency fund, so you don't need to dip into your savings should any pressing financial needs arise.
Pick the right savings account
You might keep your emergency fund in a tin or jar at home, but for the rest of your savings, you should find a decent savings account with a bank or building society. It can be a minefield, as there are loads of options out there, some better than others. To help you, use this comparison site to find the best offers currently available. By getting a better deal, you will see your savings grow faster over time.
Make your savings automatic
Come to an arrangement with your bank to automatically portion part of your checking account into your savings account. This will stop you from spending any money that should really be going into your savings. Do the same with some of your other expenses, such as your household bills; setting up direct debits, so you are never late with payments. This will help you see how much free money you have to spend each month, although you might also choose to put that excess money into your savings.
We hope this advice was useful to you, but let us know if you have any other tips for our readers. Thanks for reading, and for whatever you are saving for, we wish you fun and happiness in your decisions.