5 Savings Tips
1. Why are you saving?
This will determine your next steps. Are you saving for a mortgage, a trip, a change in career, to buy a car, go hack to college, start a business, early retirement………Each needs a different spending plan and strategy.
Prepare a plan – decide your goals/objectives for your money?
2. Have a rainy day fund
3 to 6 months of net income
3. Save at least 10% each month of your net income
If you can do more, do more! If you’ve a specific goal in mind this will be easier to achieve.
4. Set up a standing order
Saving every payday – Once they’re gone, they’re out of sight.
5. Have mixture of savings & investments
Short term (savings such as rainy day funds) Medium term (Investments with a time horizon of 7 years + and Long term (Pensions and Investment Portfolios). Each should consider your risk profile, costs, taxation and accessibility.