Make Your Money Go Futher

In the current economic climate, it’s more important than ever to use your money wisely and secure your financial future. A recent study by Bankrate suggested that only 28% of Americans will retire comfortably, while 33% will only just get by financially.

Experts tend to agree that it’s advisable to have the equivalent of at least three months salary in savings – which should be enough to cover any gaps in employment or other unexpected events. However, it’s an advantage to save more than this if you can. The more you save, the better prepared you are for the future & the less likely you are going to require debt help & debt advice should you run into financial problems.

Savings tips

If you want to put your money into a savings account, it’s important to make sure your account is the right one for you. You can do this by following these tips:

1) Shop around. Like any business, banks and other providers are competitive, and they aim to give you a higher savings rate than you’d get elsewhere. The higher the interest rate, the more your savings will grow.

2) Pay attention to the terms. Banks and other providers may advertise high interest rates, but often these rates are only available to the highest savers, or they may be time limited. Many people prefer the peace of mind of a fixed-rate account, but you may end up losing out if other interest rates go up – so consider your options.

3) Save as much as you can. It sounds like a no-brainer, but a lot of people compromise on what they save to make room for non-essentials. Life would be boring if we only ever bought what we needed, but consider whether you could afford to save just that little bit more – later on, you will be glad you did.

4) Keep an eye on the market. So long as your savings account doesn’t tie you down to the same provider, it pays to shift your savings to another account with a better rate from time to time. Even if you do have a fixed deal, you should always look at what else is available when you come to the end of your terms.

Save or invest?

If you have a large amount of money and you’re wondering what to do with it, it’s worth considering investment as an alternative to savings. But both saving and investment have their advantages and disadvantages.

Saving is the safe option. You put the money into account, you earn interest, and your money grows. It’s that simple. However, the interest is limited to a certain amount, and it can often be years before you see real rewards.

Investment is risky, but potentially lucrative. Buying shares, for example, can yield massive returns if the company is successful. However, if the company struggles and share prices fall, you could lose some or even all of your investment – so do your research beforehand.