SAVINGS

 

 

Set a savings goal

  Some people find it hard to get motivated about saving, but it’s often much easier if you set a goal. That way, rather than thinking about the money you are setting aside each month, you can focus on what you will be able to do once you’ve reached your goal.

    Your first step is to have some emergency savings money to fall back on if you have an emergency, such as a heating boiler breakdown or if you couldn’t work for a while. Try and get three months' worth of expenses in an easy or instant access account. Don’t worry if you can’t save this straight away, but keep it as a target to aim for.

    Once you’ve set aside your emergency fund, possible savings goals to consider might include:

• Taking a holiday without having to worry about the bills when you get back
• Having some extra money to draw on while you’re on maternity or paternity leave
• Buying a car without taking out a loan

                               

Save regularly

The easiest way to save is to pay some money into a savings account every month. It’s worth setting up a standing order if you can, so the money goes straight from your bank account without you having to do anything.

It’s a good idea to:

• Pay the money into your savings account as soon as you get paid, rather than at the end of the month
• Increase the amount you save if you get a pay rise or any of your outgoings (such as your mortgage or insurance costs) fall
• Check that you are getting a competitive rate of return on your savings

As your savings start to grow, you should:

• Take stock
• Make an investment plan based on your goals and timeframes
• Find the best home for your money in the longer term