How to make your savings work for you

Let’s be honest; life is expensive. Although you seem to spend all of your time at work slaving away for a paycheck at the end of the month, it always seems to disappear out of your bank account almost as quickly as it appears there in the first place. After you’ve paid your rent, all of your bills, filled up the tank in your car and stocked up your refrigerator for the week, there’s almost nothing left. This leaves absolutely no room for saving for that house you want to buy or the new car you desperately need. So, what do you do? Well, here’s how to make your savings work for you…

Make sure you have a budget

Okay, you’ve probably been told this a thousand times – but there’s a reason so many people harp on about making a budget. Because it works! If you know exactly how much you have going into your account every month, you should also be aware of how much is coming out, and how much you have left to save. By writing down all of the necessities you need to pay for (such as bills and rent), you can then work out what the excess is. By delegating pockets of money into your social fund, your food fund and more, you can then work out how much you can put into your saving fund. Try to put more in your savings than into your other, non-essential funds!

Pay off your debt

If you’re currently in debt, you don’t have much chance of saving anytime soon, because currently, you don’t have any money at all. In fact, the money you do have in your overdraft or on your credit card is actually the bank’s money – which does not work in your favor. If you want to have your own money and save it for a later date, it’s important to pay off your debt as soon as possible. You won’t be able to do this until you have paid back what you owe, and can start using your own personal money.

Start saving for your retirement

If you’re still a youngster, you might not even be thinking about your retirement. That’s too far away, right? Well, it’s never too early to start thinking about your retirement, because if you can start early, you can be living the life of luxury before you know it. While you’re still young and have fewer bills and outgoings to think about, it’s the best time to top up your retirement fund. The last thing you want to do when you’re in your 50s with four kids, a husband, and mortgage under your belt is to find a bit of spare cash so that you can afford a retirement home in a few decades!

Keep an emergency fund

We all like to believe that nothing bad will ever happen to us, but unfortunately, the world doesn’t work like that. Within minutes we can be without a job, without a home, or without food in the refrigerator – which is why it’s always important to keep an emergency savings fund. Most experts suggest that you keep around 3-6 months of expenses saved up in a separate account if anything were to happen. This is to ensure that you have enough to live on if your circumstances changed, but it’s also a great way to get you into the rhythm of saving.

If you’re struggling to save any of your money right not, you’re not alone! It’s a struggle for everyone to grab a few extra dollars here and there, but it’s not impossible – especially if you know just how to make your savings work for you.