20 May 2015

The Easiest Way to Save

The easiest way to save is to open a savings account.

The 10-10-80 rule suggests you save 10 per cent, give 10 per cent and live on the remaining 80 per cent of your wage. It is then a simple matter of having an amount deposited straight from your pay into the savings account. By not seeing it in your everyday account, you won't be tempted to spend it.

Look for a saving account where you deposit a set amount each month, they generally pay a higher interest. Make sure it can't be easily accessed - an online account where you need to wait 24 hour to access the funds is ideal. You can still access money in an emergency but you can't get it for anything frivolous. The wait will give you time to think before you spend too.

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1 comment:

jay said...

Also, if you're wanting to save for the future, a Christmas Club account could be really good. You can't access the money except in November, December and January.
They pay a small amount of interest (not that you get much even in a 'high interest' account these days) but they have no monthly fees.
Great for people wanting to get into the habit of saving but always find a reason to dip back into the account for 'emergencies'.