It’s often difficult to motivate ourselves to save money – especially when what is left at the end of the month doesn’t seem like it would stretch too much further. Nevertheless, if you really want to improve your financial situation over time, you have to start somewhere. It’s a proven fact that saving money can positively impact your current lifestyle and your future. Read on to find out how you too can have a savings plan in place, having paid off your payday loans.
1. Set up a Savings Plan
Let’s face it, if you don’t have emergency savings in place, you’ll definitely find yourself looking at potential debt. Having too much debt can put a significant strain not only on your finances but also your personal well-being. Although there are lots of ways to get out of debt, having a savings plan in place is by far the most effective solution to leave your financial burden behind.
2. Collect Some Current Info
Collect the most recent loan statements and credit cards information. Verify their accuracy and determine the existing loan balances. If possible, pay off your debts aggressively while leaving small cash reserve of £200 – £1,000 handy in your personal savings account. This money can be used in the place of an emergency loan at some point.
3. Start Committed
Let’s get off on the right foot. When beginning this plan, try to make necessary adjustments to your budget along the way to avoid overspending. This could force you to tap into your reserve and eventually slide back into debt. But what’s the best way to go about this? Well, you must know where you stand before starting to plan on how to get out of debt.
4. Future Security
According to Which?, a consumer champion in the UK, retired couples need an average of £18,000 a year for their household essentials such as food, heating, and housing. To afford the leisure activities as well as holidays, they’ll need about £26,000 a year. So if you don’t save money for retirement right now when you can, will you still be able to enjoy life without depending on anybody? It can be really disappointing to discover that you can’t live the normal life you want after retiring. To help you avoid that, here is a simple saving plan to get you started:
5. Save Money for Unforeseen Expenses – Why should I budget for expenses that I don’t know about?
Not saving for unknown expenses is often one of the key reasons why a majority of people resort to borrowing a quick loan, as they find themselves short on money. While you may not predict when certain things are going to happen and their associated costs, you can still budget for them. Having £500 to £1,500 saved in an emergency fund for an anticipated scenario may give you peace of mind when the time comes. When you’re always relying on the bank to lend you money to pay for the same, it can make the emergency situation even more pressing. With an emergency fund in place, you can easily meet the financial challenges such as:
•Repairing your home — a roof over your head or broken window
•Rising bills — rent, insurance premiums, etc.
•Replacing or repairing your car
6. The Real Emergencies…
This is, of course, the most obvious reason why you should save money starting today. We all know that emergencies are part of life and when they do happen, they can easily leave you financially handicapped. For example, unexpected job loss, or sudden accident or illness, can greatly affect your cash flow when you’re not well prepared. Generally, paying for any of these emergencies could prove to be very expensive. Since we’re likely to encounter emergencies from time to time, it’s very important to make up your mind and start maintaining an emergency savings account. Save us a much as you can! Sometimes the savings might not be enough to cater for some of the emergencies – and that’s normal. If you find yourself in such a situation and need a short-term emergency loan, MoneyBoat.co.uk are here to help. With MoneyBoat you borrow up to £800 immediately, and pay back on an agreed schedule.
7. Funding Your Kid’s Education
It’s only natural that every parent wants the best for their children — especially when it comes to succeeding in education. If your son or daughter is soon heading off to college or university, then you should start saving money ahead of the game. Higher education is becoming more expensive than we as a nation ever imagined. A majority of Uni students are unable to pay their tuition fees, so they’re forced to take out expensive student loans. After completing their education, they’ll be worrying about paying back the debt, which usually involves several years of their lives. This could mean lack of financial peace. Put simply, saving some money for your child’s University fund is essential. You’ll give your children the best opportunity to make headway on achieving their goals early enough – without pulling on your purse strings.
8. Save Money for Your Dream House
It’s certainly a great feeling to own a home, however a large percentage of people are not able to save enough to buy a house outright. This means they’ll need to borrow a mortgage. If you’ve saved a large deposit, you stand a good chance of getting a better mortgage deal — because of your lower loan to value ratio. Some of the deals include better interest rates and cash back offers.
There you have it. All you need now is to make the sacrifice to save money regularly and stick to your budget — it is surely the best way to get your financial freedom. Although it might take a bit of work and time, you will find it a worthwhile habit. We wish you the best of luck!