No matter how much money we earn, saving is a task that’s easier said than done. We can try and spend less money, but unfortunately there’s a lot more to putting a little away than just reducing our outgoings. In order to save successfully, you’re going to have to set yourself realistic goals, and there’s no point in aiming high when you know you’ve got a lot of outgoings this month. Here are a few useful tips on how to get your savings account started and sustained, so that you have something to fall back on in times of need.
First Step – Kill Your Debt
You can’t successfully save if a large portion of your income is going on interest and debts, so get calculating how much you owe! Once you have a figure, you’re going to divide up your income after priority expenditure, and focus on repaying your debts across the board. There will be some debts that are more immediate than others, so put these to the top of the list. You may also want to consult IVA Exert, which is a great place to get an individual voluntary arrangement. Once you are free of debts, you can put the money you were being charged on interest and payments into your savings account.
Savings Goals
Many of us need targets and goals in order to kick start our saving habits, so why not write a few down? Saving money varies from person to person, and while some might want to start putting away for a house, others might want to save for a world trip. No matter what your reason is for saving, having visual goals will help you to stay determined when nourishing your savings account.
Time Frames
Writing down saving goals is certainly a great idea, but what about the time frame? There’s no point in writing down your financial ambitions if there is no timeframe attached to them – and “in my lifetime” does not count! If you’re looking to save for a house or a car, determine your price range and then calculate your timeframe. Keeping your timeframe relatively short will spur you on to put more and more away, and before long, you’ll be living your dream.
Set Up Direct Debits To Your Savings Account
We understand how hard it is to save, especially when the next pay cheque is so far away. That why it’s best to set up a direct debit between your current account and your savings account, so you don’t have to transfer the money yourself. As soon as you get paid, a proportion of your wage will go straight into your savings account – saving couldn’t be simpler.
Cut Down Your Expenses
We’re not telling you to stop having a social life, but if you want to save money, you’re going to have to make some sacrifices. Look for a cheaper apartment if your current accommodation is taking up too much of your pay cheque, and this goes for mobile phones and car expenses too. Furthermore, instead of buying lunch from pricey food outlets every day, why not pack your lunch at the weekend and bring it to work with you?