Start Saving & Investing
If you haven't yet started to save, here's some simple and effective advice - start!
The future will bring you a long list of things you will need to pay for, and the more prepared you are, the easier your life will be. Saving won't just help you afford the things you want and need, it will also stop you going into debt. That means you'll be earning interest, instead of paying interest - which makes a HUGE difference over even a short period of time.
The most important part of your savings plan should be to prepare for short term shocks - perhaps a drop in income, or an increase in expenditure. All good financial plans contain an emergency fund, usually best suited to a bank savings account, which you can dip into when you need to (instead of spending on a credit card). Make sure that if you take money out of this fund, you top it up asap!
But whilst bank accounts are great for ease of access (liquidity) and safety (low risk and no volatility), you probably already know that the interest rates offered are poor, and are often below the rate of inflation.
In advanced economies, inflation is typically around 3% per year, with interest rates around 1% (meaning that your purchasing power drops by 2% each year); and in emerging economies, inflation is typically around 7% per year, with interest rates around 4% (meaning that your purchasing power drops by 3% each year).
If you keep all your money in a bank account, you'll lose money.
How to fix it? the first step is to have a solid financial plan which fits with your circumstances, your current finances, and your financial aspirations. you will need money for various things, at various times in your life - from now, right through to the end of your life. If you don't have a plan, you may struggle financially, or you may get lucky. But either way, if you don't have a plan, you definitely will not have as much money as you could have done if you planned well.
The most important thing when starting to save, is to actually start! That sounds basic, and it is - but it works. Just do it and see how you get on!
The second most important thing is to not over-commit yourself. There's no point being rich in 25 years' time if you can't afford to eat next month. So start small, and make it a habit to regularly increase the amount you save.
The third most important thing is to maximise the value of your savings - and that's where we come in. Our technical analysts constantly assess financial products and services available globally, from all the major banks, insurance companies, and investment managers, to make sure that we can offer you the best available. And our qualified advisor staff are on hand to explain your options to you in a way that gives you an informed choice, so that you can pick the solutions which suit you best.
If you want to start saving, you will definitely benefit from a Financial HealthCheck with one of our qualified advisors. However, if you just want to focus on your savings options, that's also fine - we are happy to help you choose the account best for you.
To talk to one of our advisors, please contact us by clicking here.
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