The importance of saving up is drummed into many of us from a young age, but while a piggy bank may have been sufficient when you were 10, there are many better ways to save once you’re ready to take it seriously.
Different people save for lots of different reasons. Some people save for long term goals such as preparing themselves for a better retirement or so they can fund their children through university. Others have short-term goals such as saving for a luxury holiday. Meanwhile, some people save simply so that they’ll be able to cope if their financial situation should drastically and suddenly change.
Even though money is currently tight for many people, trying to save a little bit every week or month could make a big difference. However, because money is so tight you’ll want to make sure that you’re making the best use of it. These are a few of the best ways to save money.
One of the most popular saving methods is to take out an ISA (Investment Savings Account). These are so popular because the interest isn’t taxed. However, the amount you can save is limited. Currently it stands at £11,280, although only £5,640 of this can be in cash – the rest must be in shares. While for some people this is as much as they’ll be able to save, others will want to save more.
A plain old savings account has a couple of things going for it. Firstly, they’re incredibly easy to set up, but even better, there are so many different types available. Whether you want to save a set amount every month (regular savings account) or would rather pay in – and take out – what you want, when you want (instant access savings account), there will be a savings accounts to suit your personal circumstances. Remember to keep an eye on your savings accounts if there are variable interest rates: a good savings account this year could turn into a pretty lousy one next year.
The best thing about these saving options is that they’re really easy to get sorted online. Simply find the type of account you want, fill in a few details, and the bank or building society will do the rest for you so that you’re on your way and saving. By taking just a little bit of time out of your day right now, you can be better prepared for whatever it is you want to do tomorrow.