Spending and saving
Everyone spends money, and most of us spend more than we probably should. Having some money set aside as savings will help you and your family to feel more secure. Ideally there will be enough emergency money in your family’s savings account to cover your living expenses for three months. The Sorted website’s article on saving looks at why it’s important to save.
After making a budget, think about your savings goals. You might want to save for big things, like a house or your child’s university education, but also think about short-term goals, like paying off your credit card debt or establishing an emergency fund.
Having a separate savings account helps to reduce the temptation to dip into the funds, and it’s a good way to see how the interest is making your money grow.
Saving money can feel like hard work, and you may find it hard to stick to a plan. So be realistic. And if you do give in to temptation, don’t give up on your entire plan. Just re-evaluate it. Is it working for you? Or do you need to adjust how much you can realistically hope to save each month?
If you are at the point where you’d like to invest some of the money you have saved, visit the Institute of Financial Advisers website. Remember though – there is always an element of risk in investments.