Saving money is difficult. In fact, it’s thought that 80% of us have at least some debt, with many of us struggling to pay these off and barely covering our regular monthly expenses. But, saving is important. Now we are living for longer, and having many more years ahead of us when we finish working, it’s imperative that we have our debts paid off, and money left over to support of quality of life for those remaining years. Just think, if you earn $40000 a year, and you live for 20 years after retirement, that’s $800000, so even if you’ve got everything that you want, and have nothing immediate to save for, you’ve got retirement to prepare for. However, some ways of saving are better than others. For example, simply keeping any money left at the end of the month in your current bank account, which is probably low interest, means it’s never going to grow. Here’s a look at some better ways to save.
Whether you are looking for debt management options or planning on saving a large amount of money, budgeting is one of the best ways to do it. Before you start looking at what you can do to save more or make more, focus on what’s already going on with your finances. Take the time to look at your income and expenditure. Cut everything that you don’t need, reduce contracts and start preparing meal plans. Give yourself a strict weekly budget and make sure you stick to it.
If you’ve got debts, you’ll be spending money on usage fees and interest, for nothing. Whatever you can save is worthless, if you are also in debt. Before starting to save, focus on paying off your debts. Then, save whatever you were spending on them.
If you’ve got a little money set aside, investing can be a great way to make it grow. Buying stocks and shares is always a bit of a risk, but as long as you do your research, plan sensibly, and get any help that you need, there’s no reason you can’t do well with investments.
Interest rates have been pitiful for a long time. This has meant that even with your money in a “high-interest account” it was never going to increase. But, now the economy is starting to improve, rates are also going up, and banks are often willing to offer bonuses to attract new customers. Open a high-interest savings account and save whatever you can. Let your money make money without you having to do much at all.
If you’ve got a substantial amount saved up, buying property to let out can be a great way to make money quickly. Try to find a property in a great location that doesn’t need much work, so that you can find a tenant and start charging rent as soon as possible.
When it comes to saving money, the more you’ve got, the easier it is to save. So, assess your finances and start setting yourself some savings goals for the coming months.