Getting into the habit of saving is easier when you know how, why and where. Here we look at the how, why and where of saving to help you get started with this good habit.
Most people will tell you it is good to save, but it isn’t always that easy. Sometimes it can feel like a bit of a lost cause, especially when you don’t know what you are saving for, and how best to save the money in the first place.
Why Bother Saving Money?
You might ask yourself why bother saving anything, if you can spend the money now and enjoy yourself right? Well, you probably already know that perspective is never going to be the best approach in the long term – it can lead to situations where you could end up having to look for short term loans such as bad credit loans or guarantor loans to cover unexpected events. So here are the reasons why you should always save money, in case you need reminding:
- Saving for emergencies is always a good idea. If the washing machine breaks, your car needs replacing, or if you are really ill and need to be off work and cover expenses.
- Saving for the fun things like holidays, a new phone or a designer bag will take a little time, but the payoff will be great.
- To pay for major items of expenditure like buying or improving a home.
Is It Possible To Save On a Low Income?
It is always possible to save, you just have to know how. There are so many different ways to save, you probably didn’t even think about many of them as viable options, or worthwhile ones anyway. Perhaps for one week you could make an effort to cut back on certain things and put the savings into a jar to see how much you can save if you try. Save money by:
- Avoiding buying things you don’t need like new clothes and shoes or the latest electronic gadgets.
- Cut your bills down by negotiating better deals with energy suppliers, phone and internet service providers
- Avoid buying a coffee from the coffee shop every day
- Avoid buying takeaways or ready prepared meals and cook your own food more often
Where Do I Put The Money?
So you have figured out you can save some money, the next question is, where should it go? The way the economy is at the minute, everything seems to suggest that there are no secure ways to save money, but there are. General savings accounts are a good idea, especially if you have enough money to lock away for a good chunk of time. There are also tax free options where you won’t have to pay tax on any interest earned. The details of these are comprehensive though and should be researched thoroughly before deciding if they are right for you..
Getting Into The Habit Of Saving Regularly
None of the above will matter if you don’t get into the habit of saving regularly. The best way to get into the habit of saving is to be mindful of all the money you earn and where it goes. A good way to care more about where your money goes is to make long term financial goals like saving for a house down payment or saving enough to improve your home or buy a new car, or take a holiday of a lifetime. Doing this will then help you figure out how much you need to save every month to get to that end goal.