5 Factors to Consider When Saving

Identifying means of automating your savings is becoming a popular culture among those seeking to achieve their financial goals. Saving to achieve financial security and saving to invest in particular have led to the habit of saving is a frequent financial decision. Adopting a saving culture early will help you avoid spending what you don’t have or cannot afford especially when you are in debt or need to clear credit payments.

When selecting your savings account before automating your savings, consider the following:

1. Ease of access to savings and free maintenance/low maintenance charge
2. Minimum deposit and favourable Interest rates on savings
3. Automation of deposits from your checking account (the account you receive or deposit money)
4. Check the fee schedule; Know if you will incur fees for normal account management activities
5. Are there extra features that make saving money easier? Some accounts have perks to grow your money

With your account open, set simple, measurable, attainable, realistic and measurable savings goals (SMART saving goals). Track your progress against each separately. Your goals should define how much money you plan to have saved, and after what period.

You may begin to feel impatient because of the slow increase in your savings balance. Remember, change takes time, however, there are measures you can take to increase the amount of money saved in the household and grow your savings faster.

1. Deposit in a Money Market Fund where the interest rates are generally higher than inflation. This will help you gain interest on your savings
2. Set up an automatic savings plan, that saves a certain amount of money at regular intervals especially when you gain additional income streams
3. Purchase in bulk and always take deals and offers to your advantage so that the money you would spend goes instead to your savings/investments

Financial literacy helps you manage your household finances, achieve your financial goals and plan your future. Your partner/spouse or your children deserve to understand good money management. This in the end helps us to appreciate the value of money as we spend what we earn

At Financially Fit, we believe financial success begins with you taking charge of your finances. As Financially Fit’s CEO, Steve Down would say, “Prosperity depends much more on how you spend than on how much you earn.”

Leave a comment on your highlight on a spending plan and share this article. Remember to focus on your “why” every time you spend.