In this modern world every penny counts. This article will provide some financial advice as to the best ways to save money.
Rule 1: Decide what you want to save for.
It is important that you set yourself a goal as to what you are saving for. Whether it be finance for a new car, a holiday or a rainy day there needs to be something that will motivate you to keep putting those extra pounds into the bank!
Rule 2: Set an attainable budget.
It is vital that you set a realistic budget.
To set an attainable budget you must:
A. Decide on the period you are saving for
B. Decide how much you can afford to save
The best way to do this is to calculate how much money you have incoming each month and then how much money you have outgoing. At a very basic level what is incoming must be more than what is outgoing.
Rule 3: Saving in the right account
When dealing with your finance it is vital to find the right bank account for you. One very useful tip is to open a separate account to your current account and set up a direct debit every month so that the money is automatically transferred.
Find a high interest account. Most of the highest interest accounts in the UK include regular savings accounts where you can save usually up to £250 per month at a high level of interest typically 3.5-5%.
Another type of savings account to consider is an ISA. This is an account in the UK that allows you to save £5760 (2013-14 tax year) totally tax free. Shop around for the best ISA account as some banks reward their customers for having online ISA’s.
Finally remember accruing finance takes a while but sticking to these three basic rules will see an improvement in your finance in no time.