You might be wondering why on earth I would choose to focus on savings three weeks before Christmas! Surely it can wait until January when some are living frugally and more willing to take advice on handling their finances. Now is as good a time as any.
As far as I am concerned, savings are not just for a certain period in our lifetime – they should be ongoing. I am a saver (as you probably have guessed) and my wonderful husband is more of a spender. It works as we complement one another bringing a healthy balance to our marriage when it comes to our finances. I maintain our expenditure which as you know fluctuates on a monthly basis. I use a formulated Excel spreadsheet which I cannot praise enough. At a glace you can identify your expenditure and what remains as your disposable income and savings.
If you currently save then good on you. You or your family members will most certainly reap the rewards in years to come.
If you are not a saver, I urge you to consider this. I suggest you split your savings into three;
1. Long term – a lump sum for your children when they go off to university, investment for retirement
2. Medium term – A holiday of a lifetime, an expensive clothes or jewellery purchase
3. Short term/contingency fund – weekend breaks, birthdays, Christmas, car repairs, household repairs (if home owner)
You can start by looking at your disposable income and choosing a realistic figure to save each month. Resist the urge to become over zealous and save more than you can comfortably afford. You would only end up dipping into your savings when you run low or feel you deserve a night out/a new top – are you getting the picture? I would advise you set up a standing order to ensure the money is transferred on the same day of each month.
Do you regularly save?
Who or what influenced your decision?
Perhaps you have some tips for newbee savers