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FOOL'S EYE VIEW
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How well are you regularly paying yourself? It may sound like an odd question but it's a serious one. What I mean is, are you routinely setting aside an adequate percentage of your salary each month ie: making regular savings? As a rule of thumb, it's a good idea to try and save a percentage equivalent to half your age. So, for example, if you're 30 then, ideally, 15% of your take home pay should be going into a savings pot each month. If you can't quite manage that much at the moment, don't despair. The important thing is to establish a regular pattern of saving and stick to it. Set up a direct debit that automatically deducts the cash from your monthly wages and after a while, you'll never even notice it's missing.
Savings are important. You need to nurture them, love them, pay attention to them if you're to reap the rewards they can bring you. For example, they can look after you when an unexpected car repair bill crops up or when your washing machine finally decides to give up the ghost after fifteen years of loyal and faithful service. They will be there for you should you find yourself unable to work through illness or redundancy. So try and build a pot of cash amounting to at least three months' worth of living expenses in an easily accessible savings account and keep this emergency pot topped up at all times. This may sound quite hard to achieve, but it isn't if you make sure you are always getting the best deal. Make your hard-earned money work for you by paying attention to it. This means always ensuring that you are getting the highest interest rate possible on your savings and paying as little as possible for the necessities of life. For longer term savings, use a Cash ISA. These are comparable to saving money in a simple building society account - except you don't get taxed on the interest, and you often get higher rates too. You can save up to £3,000 a year in a Cash ISA, and shift it between ISA managers to ensure that you are always getting the best interest rate available. At the moment, you can expect to get in the region of 5% interest so if you're getting less than that on your savings then you're not cherishing them enough. Another good example of making your money work for you is to make sure your day-to-day bank account, into which your salary is paid, also offers a decent rate of interest. While some current accounts continue to pay a pittance in interest, more and more are offering some pretty decent rates. Ask yourself why your bank should benefit from the use of your monthly salary instead of you! It's your money, after all. Other ways to save include not wasting money by inadvertently paying more than necessary for the things you have to buy such as food, utilities (gas and electricity, for example), and insurance. If you can save even a fiver on each of those four necessities each month, that's £20 extra for your savings pot and it doesn't take much to achieve it. Don't forget the benefits of occasionally remortgaging to get a cheaper rate of interest or ensuring your credit card charges the lowest rate possible (preferably 0%) just in case you can't afford to repay your card in full every month.
Key points All of these things require a little bit of research and some paperwork, of course. The trick is to save regularly so you build up a pot of money that is easily accessible in case of emergency, as well aiming for some long-term savings. And, pay as much attention to them as you would the love of your life! Believe it or not, savings can be really sexy! Find a great Savings Account, Cash ISA and Interest-Bearing Bank Account. Consider Remortgaging, switching to a better Credit Card and paying less for your Utility Bills