The new year often sparks renewed vigour in the population when it comes to plans for saving. However, New Year resolutions often fall by the wayside and it’s important to stay on track when it comes to your savings. There are little ways to help you remain focused to ensure you succeed in your endeavours.
The first thing to establish is where your savings will be kept. It is best to have a designated account and interest rates can vary wildly so it’s important to ensure that you have done your due diligence and secured the best rate available for you. One of the considerations is how quickly you want to access the money. A fixed term account will often offer better interest than an easy access account, however, your money will be locked away for the duration of the term. Many people choose to split their cash between easy access and fixed term in order to give them flexibility.
Of course it is important that you pay off any debts you have before you consider saving as the interest on your debts will most likely exceed any interest you may be earning on your savings.
It is also recommended that you first establish what you are saving for. Whether it be a house, a holiday, an extension or money that you wish to put aside for your children. Having a defined goal means you are much more likely to resist the temptation to spend your savings. Once you have established what you are saving for, and the amount you are aiming to achieve, you can work backwards to calculate how long it will take you to achieve this end. Ensure that your monthly payments are in line with what you can afford and you will be much more likely to achieve your goals.