Four Steps to become a Super Saver
It’s never
too early to begin saving for your future, but when you’re in debt and
on a low income it can be hard to know where to start. The good news is
that everybody can become a super saver, simply by following a few
simple steps.
1. Look after the pennies:
This old adage really does work. Putting £1 per day away in a savings
account won’t make a dent on your weekly budget, but after a few years
you could have £1,000 – enough to really make a difference to your
life. Start your daily saving with a small amount and then increase it
gradually to see the best results.
2. Pay off debt: Before
you even begin to think about saving large amounts, it’s worth paying
off any outstanding debts. The chances are that you will be paying more
interest on your debts than you will be receiving on your savings, so
this approach makes sense. On the other hand, it’s always a good idea
to have a buffer amount in your savings account for emergencies –
anything between £500 and £1,000 is sensible.
3. Avoid unnecessary losses:
When it comes down to it, what saving money really equates to is simply
not spending it. If you’re trying to put something away for the future
then it’s probably a good idea to avoid impulse buys and unnecessary
items, but you should also check that you’re not losing money through
inattention. Limit credit card use, avoid bank charges and check your
direct debits to make sure that you’re not overpaying. It’s also worth
allocating some time to go through the fine print of your mobile phone,
utilities and insurance contracts to see if you might be able to get a
better deal elsewhere. By switching providers you could save hundreds
of pounds every year - and all of that can go into your savings account
and start earning interest.
4. Know your savings accounts:
The best thing about having money is that it can actually earn you more
money, so don’t throw away this potential by settling with a low
interest account. If you’re new to the whole business of saving then
the first step is to have a look around to see what’s on offer, and the
easiest way to do this is online. ISAs are a great way to save – they
are tax free and you can save up to a reasonable amount in one. With
reputable providers you can open an ISA online and start your tax free
saving. For those saving more than the ISA limit, the next step is to
open a standard savings account. Again, you should shop around to make
sure that you get the best deal out there and always reassess your
account annually.
Finally, it’s worth making a budget so that
you can see at a glance where your money is going and how much you’re
saving. You’ll soon find that there’s nothing more satisfying than
seeing the amount in your savings account adding up and dreaming about
what you’ll spend it on in the future.
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Never argue with an
idiot, he will drag you down to his level then beat you with experience
~~ Bony
