Why Save?
There are many different reasons to save money and everyone has their own reasons. It maybe for your dream car you have always wanted, it may be for your children’s education or it may be for a new television. Whatever the reason may be it is always a good idea to keep some money aside for a rainy day; you never know when an unexpected expenditure may turn up.
One of the best ways to save is in small amounts on a regular basis; saving money can be easy providing you plan it well. If you know you have a positive cash flow at the end of every month then put a little amount into a savings account every month. This way you will not miss the money as you are only putting a little bit aside but after a few years with all the interest added them small amounts could be enough for your dream car or holiday.
To calculate your cash flow for the month you need to calculate how much money is coming into your household and how much money is going out. If more money is coming in then going out then you have positive cash flow hence you have extra money. For example if your total income for a month is £1,500 and your total bills for the month are £1,200 you then have a £300 positive cash flow. From that £300 you could spend £150 on whatever you wanted and save the other £150. Savings 12 months of £150 will amount to £1,800 for the year and if you do this for 5 years you will have saved a nice amount of money. Not forgetting you will be earning interest on this money as well.
The more money you have in your savings account the more interest you will earn. One thing to bear in mind is to make sure you start to save only when your monthly cash flow is positive and you are not in debt. You should pay off all debts then save or if you can save whilst you are paying off your debts then this is a very good option.
Savings Accounts Guide |
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"Saving money can be easy providing you plan it well" |