Making every penny count isn’t something we’re all raised to do. These days, there are so many incentives to spend more than we need. “Buy 2 get a 3rd one free,” or “Free cup of coffee after your tenth purchase” are common promotions we fall for. Do we really need 2 of those? Can we get free coffee at home? Parting with hard-earned cash should be more difficult to do than it is. What we need is motivation to save.
Start with your bank savings account. Is it offering you any incentive to keep adding cash to your savings? There are plenty of bank savings account promotions that you can get to take advantage of when you shop around online. You should look for high interest rates. This is one of the best ways to make your money grow. Life will continue to get more expensive, so the cash you put away for a rainy day needs to be worth more tomorrow than it is today.
There are hundreds of reasons for saving. Choosing your purpose is all part of the fun. Perhaps you need a new kitchen? Is your car past its prime? If you have children, perhaps you want them to have a good college fund in the future? It’s not just about having the cash ready for purchases. It’s about having something there for emergencies or offering your family the financial security they need.
In recent years, there have been a large number of pretty devastating storms. Your insurance policy may be quite comprehensive. Chances are it’s not going to cover everything should your home be damaged or destroyed. Medical insurance policies often charge an excess and have upper limits of cover. Are you able to pay above and beyond what your policy will offer?
Savings can provide peace of mind. They can also be a great way to fund a vacation of a lifetime or a big purchase. Do you have any big birthdays coming up in your family? Wouldn’t it be wonderful if you had the cash available to buy that item they have always wanted? Perhaps the musician in the household would benefit from a high-quality instrument? Or your young artist might love a masterclass in Paris.
Now you’ve got a good idea why you’re saving, how on earth do you do it? Smart shopping is one of the best ways to tackle excess spending. You can always go further and set yourself budgets for groceries, utility bills, and fuel. Would you be prepared to make any sacrifices so you can save that little bit more? Giving up browsing the sales each holiday period might save you quite a bit!
Not everybody has the means to save a lot each month. However, there are always savings to be made to add to your savings account. Just a few cents each day will add up to a lot of cash over the course of a year. There’s no rush when you’re planning ahead and for the long term. Best of all, it’s teaching your kids to live well without debt.