Save, Don’t Spend!
“Do not save what is left after spending; spend what is left after saving” – Warren Buffet.
Saving Stock photos by Vecteezy
As Warren Buffet rightly stated, saving should be a priority whenever you earn some money! Whether it’s some pocket money from Mum and Dad, or a weekly wage from your first job, the best time to start saving is NOW! Although it may seem confusing due to the variety of places where you can save your money, below we will begin to breakdown that process to ensure you are putting your money in the best place for you!
WHERE CAN I PUT MY MONEY?
There are so many options when it comes to saving money, so it is often tricky to know where to start! Basic bank savings accounts are an easy place to start. These accounts accept (almost!) anyone, so both young people and people with poor credit scores can access an account. However, these accounts do not offer loans, and often have low interest rates. Online savings accounts are similar to basic accounts, however due to solely operating online, they tend to offer slightly higher interest rates than the “old-school” banks. Monzo and Revolut are great examples of online banks. If you want an alternative to these more traditional methods, bloommoney provides some other options to get yourself into the world of saving!
WHY SHOULD I START SAVING?
Reduce Risk – Saving money ensures that you will always have some spare money in the case of an unexpected expense, and this should (hopefully) reduce stress!
Build Wealth – Saving when you are young, and picking the right places to save your money allows for your wealth to build over time, as you benefit from interest.
Preventing the build-up of debt – Your savings can help you to pay off any outstanding debts, so that you can control your debts, rather than letting your debts control you!
MAKING YOUR FIRST STEPS INTO SAVING:
It’s easy to get saving, so there is no excuse to not make a start today! For those of you who receive income from a part-time job (or from pocket money), set some money aside each month into a savings account (you will need to ask for permission from your parents to get an account set up!). Set yourself a monthly saving goal and try your very best to stick to it!
Have a read of the information on Tesco bank ‘s page which provides some extra information to help you hit your saving goals!
| Key Terms:
Interest Rates – The rate of return paid to you when you place money in the bank. Credit Scores – Number between 300-850 that shows lenders how responsible you are with your money. Unexpected expenses – A cost that you were not prepared for, but you can cover with your savings! |
