Tuesday, July 15, 2008

An important finance lesson, savings goals

If you are not used to saving, the best way to pick savings goals is to start with something short-term and open a savings account. In other words, choose something that won’t cost you a fortune. This is because you will achieve your goal quickly and so be really encouraged to do it again for something a bit more expensive or long-term.

This small thing you save up for first could be an iPod, a digital camera or a weekend away. What ever you choose, make sure it is something your really do want. If you only half-want it, your enthusiasm will be difficult to maintain. Then you’ll find that before long, you'll be frittering your money away on small things like a coffee or chocolate instead of saving it. If you have a solid long-term goal then you might open a term deposit to make the money saved that little bit harder to access.

It's quite amazing how quickly money can mount up when you put a bit of effort into saving. You might like to save your money in a jar or a shoebox, just so that you can have the satisfaction
of seeing it mount up. But this is only good if the amount is small, otherwise you may get robbed. It’s also not a good idea if you are the impulsive type of person who is likely to blow the lot just because you had a fight with your boyfriend/hubby/ sister/mother. In this case it’s better to get a savings account at a bank.

No comments: