Money & The Law Of Saving

If you wish to become financially successful in life, you absolutely must develop the habit of saving your money on a regular basis.

The more you save your money today, the more financially secure your future will be and the less you will have to worry about having enough money to survive on or having enough money to buy the things you want and need in life.

Pay Yourself First

One of the easiest ways to begin saving your money is to pay yourself first. This simply involves taking a portion of your income each month and putting it into a savings account before you do anything else with your money.

One mistake people make when it comes to saving their money, is to try and save what they have left over from their paycheck at the end of the month.

However more often than not there is no money left, and so they end up not saving anything.

By paying yourself first, you will find that your spending habits will quickly adjust to accommodate the amount of money you have left.

This way you will always be able to save some money, and always have enough left to pay your bills and buy yourself things.

A good savings goal is to save at least 10% of your income, and if possible, 20%. But if you can’t save this much, then save at least 1% of your income each month and gradually increase that amount as you can.

The important thing is to get into the habit of saving your money on a regular basis, because once you can do this, you will find it easier and easier to save your money and to save more of it.

Where To Save Your Money

Banks are keen for you to save your money with them, so look out for special introductory offers that will give you a high rate of interest.

Usually these promotional rates will last for one year, after which the interest rates will fall down to a much lower level.

Keep your money in that account as long as you are getting good interest rates, and then move your money somewhere else when those rates expire.

Types Of Savings Accounts

Generally there are two types of savings accounts.

Instant Access Saver Account

The first is an instant access saver account. These will allow you to take your money out whenever you want (although some may limit how often you can do this) whilst giving you a good rate of interest, somewhere around 3%.

Instant access saver accounts are good for people who want to get into the habit of saving their money but would like to have regular access to it.

Regular Saver Account

The second type is a regular saver account and this will give you a higher rate of interest, but you won’t be able to withdraw money from that account for a certain period of time (usually 1 year).

Most regular saver accounts will also require that you pay money into that account every month, and if you don’t, some banks may drop the interest rate.

Regular saver accounts are a good choice for anyone who is looking to stash some money away for the future and doesn’t need access to it straight away. You can expect to get anywhere from 5-10% interest rates.

Ideally a person should have both an instant access and a regular savings account.