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 daily 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 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 for emergencies – anything between £500 and
£1,000 is sensible.
3. Avoid
unnecessary losses: When it comes down to it, what
saving 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. Learn:
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. With reputable providers you can open one
online and start your tax free saving. For those likely to exceed the
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 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
