When people start talking about finances, things can get quite confusing and sometimes you might want to avoid the topic completely. But, that doesn’t have to be the case. Here at WageWise we help explain important money topics including proper planning and budgeting, understanding your payslip and bank statements, debt counselling, and retirement planning.
July is National Savings Month, so it’s a great time to #GetWageWise and learn more about savings which can help you be better prepared for the future and for any of life’s emergencies.
Saving is something we hear a lot about, but are we doing it? One of the most important parts of saving is that the sooner you start, the better. This is because one of the benefits of saving your money in a separate savings account or investment product is that your money earns interest. This means that it grows a little bit every year and helps you to build your wealth. The sooner you start, the more time you money has to grow.
Watch our savings video:
We are all at different stages in our savings journey. Some of us might have already started saving, while others are only just getting started.
Here are 4 top tips to START saving:
- Set a savings goal: Having a specific goal that you can work towards makes it easier to stay on track and to monitor your progress.
- Save regularly: Consistency is key. Commit to putting money into your savings every single month. Ideally this should be done at the start of the month or as soon as you get paid your salary. Hint: Set up a stop or debit order for your savings so payments happen easily and automatically without you needing to do anything. This means you ask the bank or a financial service provider to deduct the money from your account each month on a set date.
- Save what you can: Sometimes we think that to save we need to be putting away lots of money, but that isn’t the case. Every little bit helps so save whatever you can.
- Save in a separate account: Always put your savings into a separate bank account. That way it is separate from your day-to-day money account and you can’t spent it easily. You will also earn better interest rates when your money is in a dedicated saving account or investment product.
If you’ve already started saving, great! It’s important that you maintain this and keep growing your wealth.
Here are 4 top tips to KEEP saving:
- Review your savings goal: Over time your savings goals may change. If this is the case, you might need to adjust the amount of money you are saving each month.
- Don’t withdraw your funds unless you have to: We may be tempted at the end of a tight month to take some money out of our savings account. Try avoid this. Remember that the money in your savings account is earning interest and growing your wealth.
- Increase contributions when you can: If you are already putting money away each month, try increase the amount you put away. Maybe you have stuck to your budget properly this month and have extra money left over, or you have just received a bonus or a pay increase. The best way to spend this extra money is to put it into savings. Your future self will thank you.
- Talk to a financial adviser: Some savings goals are difficult to calculate and the best way to work out how to make these goals happen is by seeing an experienced and certified financial adviser. Interested? Contact the Financial Sector Conduct Authority (FCSA) by email at email@example.com or call them on 0800 203 722. You can also visit their website.