If you have followed up on our wealth building tips sofar, you'll have:
- reined in your overspending
- balanced your outgoings and expenses
- insured yourself against the worst
- thinking of started to save in a Cash ISA
Once you have an income that’s enough to cover your ‘basics’ you need to start developing a proactive and regular long-term savings plan.
Saving becomes easy if you remove the necessity for willpower and 'pay yourself first'. In your wealth building plan under your savings goals, you should already have decided how much you can save in a year and therefore you know the monthly amount.
Open a separate savings account such as a high interest cash ISA, and direct the appropriate amount of money into it, via a standing order. Let the transfer take place the next day your salary is paid into your current account. The money you’re saving is ‘gone’ before you ever see it.
By doing it like this, you are taking the stress out of saving. You know you've already put away your savings 'quota', so, if you wish, you can spend every penny of what's left over with a clear conscience. And because ‘you never actually see’ the money you're saving, going without it doesn't feel like major deprivation.
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