Do you struggle to save money? You’re not alone. A lot of people find it difficult to squirrel away each month, but it is something you can work on.
There are a lot of things to think about saving for, including a down payment for a house, an emergency fund, and even those fun savings for something you really want to buy. But without a plan for your savings, you can find it difficult to stay motivated.
So what kind of things should you be saving for? Take a look at these five types of saving you should be thinking about now.
1. Your easy-access savings
Life can be unpredictable, and while your earnings can see you through the weeks easily one month, the next month might be tougher. Having some regular savings you can dip into as needed can be handy for getting you out of a tight spot – meaning you won’t have to rely on credit or borrowing money to get by.
If you regularly need to dip into your savings, you might need to rethink, or start, a budget. A budget can help you work out where your money is going each month and help you identify areas to cut down. You can start straight away by planning meals and cutting down your energy use to help you free up some extra money to save each month.
2. Long-term savings
What are your long-term goals? Do you want to travel? Buy a house? Get married and have a family? You’ll need some money behind you to do these things! Creating some savings goals can help give you something to work towards, making it easier to stick to. Set yourself some targets and look at some easy ways of saving money to help you reach your goals quicker.
Keeping your long-term savings in a high-interest account could help you grow your savings and keep them secure. You might also want to think about some investments that could help you grow your assets to fund your long-term savings goals.
3. Emergency fund savings
Having an emergency fund shows you’re responsible for your finances. It can be there to cover a set period of expenses if you’re suddenly out of work, and can also be there to help pay for financial emergencies, such as damage to your home.
Starting an emergency fund should be done with an initial target in mind that you can keep adding to as needed. You need to be strict with yourself about what these savings are for, making sure you don’t dip into them for any old reason.
4. Retirement savings
While your retirement could be a long way off, it’s never too early to start planning for it. Making sure you have some savings, a pension plan and even some investments can help secure your future. You should check out the Latest Deals guide to pension credits to see what you could be entitled to, as this can help you work out where the rest of your savings need to come from.
When thinking about your retirement, you should consider what your future plans are and what you’d like your lifestyle to be. You should also think about planning for milestones in your family’s life such as weddings, college, and more.
5. Your fun savings
Is there something special you have your eye on at the moment? Why not save for it and make it happen! Fun savings are good to have. They’re a great excuse to treat yourself, but they can also be a fantastic reward for all of your hard work. Whatever’s on your wish list, from a dream vacation to a designer item you’ve been lusting over, set yourself a target and get saving. Some of the things you can do to hit your target quicker include having some no-spend days, ditching your daily take-out coffee, and quitting your gym membership.
Even if you’ve never been good at saving in the past, there’s never a bad time to start. By setting yourself some goals and being disciplined with your finances, you can soon get your money in order so that you don’t have to worry anymore. Having multiple types of savings can be useful for helping you achieve different goals, but it also means you’ve got both your short-term and long-term savings covered. Make a plan to take care of your savings and see the difference it can make in your life.