Photo: Ken Wilcox
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The recession has been a great equalizer, hitting bank balances hard across the world from the top of the pecking order all the way down to the bottom. If you’re savvy, you will have realized that with so many jobs becoming redundant, the cost of living on the rise and salaries frozen, that it’s more important than ever to build up savings. In these fast times, many people don’t know where to begin with saving other than starting up a saving account with HSBC or another established bank. This guide will give you a few tips to get you on your way to financial security through savings.
Saving isn’t complicated, but it does require a lot of willpower, so be sure you are creating paths to success. One way you can do this is to ensure that the account you are saving to is a specialized saving account. Saving accounts usually allow you to make minimal withdrawals through the year and provide a higher rate of interest, ensuring your savings are kept out of reach.
Now set up a standing order, or auto-draft, to automatically take a set amount of your salary and transfer it to your saving account every month. Consider this like any other bill. This will stop you from feeling tempted to spend it rather than put it aside for a rainy day.
Remember your pennies and cents: many people forget that small amounts of money quickly add up into large amounts. Emptying all the change from your pockets into a jar at the end of the week is a great way to build savings. If you don’t think you’ll manage to put all your change in the jar, start by putting pennies and small change in and build from there. Once the jar is full, take it your bank and deposit it into your saving account.
For those lucky enough to receive bonuses from your employer, it can be easy to quickly fritter it away on novelty or entertainment items, but before you do consider how much more that bonus could do for you collecting interest in your savings account. As a bonus is in addition to your regular pay you are not going to miss it if it goes straight into your saving account, so be financially smart and bank it.
If you remember these simple tips, you’ll soon be on your way to a healthy nest-egg.
Do you have any tricks that you use to funnel more money into savings?