To reach your goals you need to save money and not just rely on what is left over at the end of the month.
This money should be saved in a specific savings account. A savings account helps your money to grow because it earns interest over time. Having savings gives you the financial peace of mind that you are prepared for the future and any of life’s emergencies.
Spend less = Save more
Want to start saving? Follow our simple 13-step process:
Remember: Savings is setting aside money you don’t want to spend now for emergencies and for future purchases – these are usually shorter term.
Investing is buying assets such as stocks, bonds, and property, with the expectation that your investment will make money for you – these are usually longer term. It’s important to know the difference when it comes to choosing the right products for you.
One of the best ways to save money is to set specific goals. Having a savings goal will help you commit to saving money and doing so regularly.
Start by thinking about what you might want to save for (such as a fridge, a car, a holiday, or further education). From there you can work out how much money you will need, by when, and what you are able to save each month. Then, you can calculate how long it will take you to save for your goal. Use our template here to help you set your goals.
Remember: Your savings goals should always be SMART. Specific, Measurable, Attainable, Realistic, and Time-based.
When choosing a savings product, you need to get the one that suits you the best and that will help you achieve your goals. Choosing the right products can be hard though and that’s where a registered financial adviser can help. We recommend you use the services of a financial adviser when planning for your future as they can assist you in making the best financial decisions for your lifestyle. Whether you’re saving for groceries or for retirement, or anything in-between, they can help!
These are for goals that will happen in the next one to two years. For this, you want a product that can earn some interest but is also immediately accessible if you need the money. Click here to learn more.
These are for goals that will happen in the next three to five years. For this, you want a product that can earn compound interest to help grow your wealth. Click here to learn more (part 1 & part 2).
These are for goals that will happen in the next five+ years and could even be up to 30 to 40 years. For this, you need products that will benefit from compound interest so that you can get growth that will beat inflation. Click here to learn more.
Want to learn more about savings and investments?
Savings: top tips on how to consistently save money and reach your goals as well as what savings products are right for you: click here to listen to them.
Investments: understand how to buy assets that will make money for you over the long term. It can be confusing but we're here to help with that: click here to listen to them.
Check out the recording of our Investing webinar to learn even more about this important financial topic. Click here
