Is 'saving for a rainy day' something your parents and grandparents talk about? Does the thought of being in a position to save seem like a lifetime away? With the rising costs of living and the increasing dependency on credit, fewer and fewer people are saving for their future, their retirement or even unexpected expenses.
According to a report in the Daily Mail, one in three people are not currently saving, despite Government warnings that, as a nation, we need to start saving much more for the future. But with more than nine million people in the UK falling into debt, how do you even start to contemplate saving? The Money Advice Service offers support on a range of money issues including debt and saving – click here for more information. If you’re able to, there are a few ways in which you could consider starting to save – and the good news is it’s never too late!
Saving for children
Whether you’re bringing them up or sending them off to university and out into the world, children can be expensive. Funds dedicated specifically for children don’t always offer the best deals. The type of savings account you choose will depend a lot on the risk you’re willing to take, but even saving a small amount every month from the time children are born, can increase to a significant sum by the time they’re ready to leave home. Check out the best current deals on sites such as www.moneysavingexpert.com.
Saving for retirement
Recent changes to pension rules mean that most employees will automatically be enrolled into a workplace pension if they aren’t already part of a scheme. This means that, if you’re employed, you’ll be saving for your retirement – however, this is a minimum amount and you may want to consider investing more. You can get advice at www.gov.uk or from independent advisors – but ask up front whether any charges apply.
|John hard at work|
Saving for an emergency
The washing machine blows up, the car fails its MOT, an unexpected school trip crops up. Life has a habit of throwing in surprises at the least convenient time. Having a small buffer can help you to tackle life’s little challenges. Even saving just £20 a month can give you a £240 cushion after a year. Set up a standing order so you can’t forget to save.
If being able to save seems a long way off….
If saving seems like something you’ll never be able to do, take a step back and work out a plan to pay off your debts. Don’t be tempted to take what seems like a quick fix solution such as a so-called payday loan, but work out a schedule which enables you to pay off the essentials first and gradually get your finances back on track. If you’re really struggling with existing debts, charities such as www.stepchange.org can offer impartial free help and advice.
|It's always good to have something saved for a rainy day...or travels|
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