Before you do anything, it might help to take some time to think about what it is that you want to achieve. What are your financial objectives? By answering this question, you’ll get a little more direction and planning should be a bit easier.
Many people can struggle to limit their spending and may end up spending more than they make, which makes saving impossible. You live in a society where you are encouraged to consume and showcase your latest purchases on Instagram — which, of course, isn’t necessarily a bad thing if you manage to live within your means, but it can become a problem when you overdo it.
The danger of overconsumption and instant gratification is that you could lose control and find yourself in debt. So, if you’re looking to limit your spending, and reclaim power over your finances, setting a budget for yourself can help.
If you’re serious about saving, it’s more helpful to make it a habit than something you do occasionally. A habit is something that you do on a regular basis.
So if you want to improve your financial future, set aside money every day, week or month — it’s up to you. The idea here is to shift your mindset toward forming a saving habit — the more often you do it, the more likely it is that it will stay with you.
You don’t even need to make a big contribution; In fact, you might want to consider saving a little more often to see what impact it has on your finances. For example, if you deposit $50 a month in a traditional savings account, after 12 months, you will have at least $600 in your account. And if you continue to save at the same pace for another 12 months, your pot will be worth $1200.
Nearly all banks and development agencies offer savings accounts with a certain interest rate, and all of them have slightly different features.
Usually there is no limit to how much you can save each year. And oftentimes, the more money you put in, the higher the interest rate you get.
If you have already used your savings allowance in your ISA (Individual Savings Account, these are very popular as they are a tax-free way of saving or investing) you may want to open a savings account for the extra money you can save.
