It is clear to us that it is worthwhile and advisable to save a sum of money for the day we need it, for our children’s education, for our pension funds; but we do not always know how to go about doing this. How much should you deposit each month, for how long and is it at all right to save when our bank account is in the red? Oftentimes, we get into financial difficulty through no fault of our own.
We may have lost our job or been made redundant. We may have struggled with a difficult divorce, or perhaps an accident or unforeseen event has left you unable to work and struggling to make ends meet. In this case, you should always seek out assistance.
You should talk with experienced personal injury attorneys to ensure that you have the right financial assistance that you deserve.
Think about the sources of funding
Even if you do not have a small amount that you can allocate from your current income, think about other sources. Some parents may allocate a certain amount of money into a fund each month but some parents are not in a position to do this.
If your main focus is your family and kids, then you should look at some options to help you create a trust fund for your kids, even if you are earning very little.
Think about what the purpose of the savings plan is, what its purpose is, what the final amount you will want to save and when you will need the money.
Are you saving without a defined goal and simply interested in the money available when needed or are you interested in saving for a family trip abroad in 3 years? Setting the goals will help you decide on the right savings plan for you.
The amount of monthly savings is a function of your goal.
If the savings are intended for a new house or a new car, you can invest a smaller amount each month, for a longer period of time. Bigger purchases should not be rushed and decisions should not be made lightly. There are many options that your bank may be able to offer you, which will make the savings process easier.
Take time to save
From an economic point of view, it is not advisable to save when the interest you pay on the minus in the bank is higher than the interest you will probably receive from the savings.
Emotionally, we all have a strong need to know that we have a “safety net” in the form of our savings in the bank, which will be there to help us even in the event that the liquid money runs out. The more you start saving from a younger age, the higher amounts you will reach in the future.
Never think that it is too late to start saving because the most appropriate time is here and now. Good luck with your savings and remember, the control and power is in your hands!