How to Save Enough To Cover The Future
Most of us have an account that our wages or income goes into, and from there we might funnel some of that cash – if there is any left over – into another account that will earn us a bit more interest each month.
But how do you cope when you need to save a large amount of money? It doesn’t matter what the event is – it could be a holiday, it could be a new car, or even the year’s tax bill if you are self employed. The point is that we all have reasons why we need to put some cash aside, but in doing so we want to be sure it’s earning the best possible interest while we’re putting it away.
The key to making sure we are going to be able to save enough to cover this future event is to plan for it. The best way to do this is to start by working out how much you are likely to need and when you will need to have the amount of money by. You can then divide that amount by the number of months you have before the event – whatever it may be — arrives. This will tell you how much you need to save each month to have the right amount of money available by the due date.
Some people find that the best way to make sure they put the right amount away is to set up a standing order to do so; that way they don’t have to remember to do it each month. If you find that you don’t have enough surplus cash available each month to do this, look at your outgoings and see where you could tighten your belt to get the required funds. Most people can cut back in some way – and you can often save a lot more money than you think each month.
The next step is to find a UK saving account to put that money into. The better the rate of interest you can get, the more you will benefit while the money is mounting up. It’s also necessary to make sure you can get instant access to the account, since you will want to be able to withdraw the money when the time comes to do so.
Some people actually set up several savings accounts to save money for different purposes. This is an excellent way to keep tabs on how you are doing, and it can give you a much more accurate idea of whether you are saving enough for each purpose. If you save everything in one account it is much harder to see whether you will be able to do everything you want to.
In short, organise your accounts and plan for each large payment that comes your way. You’ll find it much easier to afford everything if you do.
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
