Short and Long Term Saving Plans
Saving is one of the best ways to allow yourself financial freedom and independence. You might be saving for next year’s holiday or simply want to keep aside some cash for the future. Whatever the reason, saving some of your income gives you greater long-term security and peace of mind and means you always have funds available when you need them most.
If you need to save money in the short term then a good way to start is by setting up a simple instant access savings account. There are plenty of these accounts on the market so shop around and find the one that best suits your needs.
Many savings accounts can be opened with a little as $1 and look for instant access if you want to be able to withdraw money whenever you need to. Instant online access savings accounts can offer some of the most competitive rates and you could open an account online in just a few clicks.
Once you have opened a simple savings account then try to make regular payments to boost the balance. You could start by setting up a standing order from your current account. Have the money transferred straight after payday and choose an amount you can afford.
If you have any money left over at the end of the month you could also transfer this into your savings account. Apply the same rule to any pay rises you receive and save the extra amount instead of spending it. With a little effort you could be setting aside savings regularly and watching the amount grow.
Having some savings you can instantly access is essential in case of emergencies but it’s also worth thinking about your savings over a longer time span. If you are planning to save over a greater period of time then you can find specific accounts that are more suited to long term saving plans.
A cash ISA is a good option if you want to save money long term and allows you to take advantage of your yearly tax-free savings allowance. This type of savings account pays interest tax-free up to specific limits which help you to get more back for your money.
Paying into a pension is another way to set money aside for your future. Speak with your employer to see if they provide one or are prepared to contribute on your behalf. The sooner you begin paying in, the higher your income is likely to be when you retire so there’s no time like the present to investigate the opportunities.
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In: Personal Finance · Tagged with: financial, financial freedom, interest, long term, saving, short term, tax-free
