The Basics of Saving

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Saving money for the future is important. For everyone, including your kids, but first you have to be a little savvy. 

So where does it all begin?

It is clear to us that it is worthwhile and advisable to save a sum of money for the day we need it, but we do not always know how to do it. How much should you deposit each month, for how long, and is it at all right to save when our bank account is in arrears? 

Set goals 

Think about the purpose of the savings plan, 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.

What is the recommended amount to save each month? The amount of monthly savings is a function of your goal. If you need a considerable amount of money in a short time frame, then you will want to deposit a higher amount every month. If the savings are intended for an apartment or car a couple of years down the line, then you can invest a smaller amount each month, for a longer period of time.  

You are in the red...Should you 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. 

Save Early

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! Parents should encourage children to keep some of their pocket money or money from Saturday jobs in a fund. Educate them about services available to them (such as the UniversalAccountingSchool.com) and this way they can learn about money and perhaps even take it onto their future profession. 

Monitoring and Control

Even after setting the goals, choosing the experts to accompany you and deciding on the most appropriate route, it is important to be constantly updated on the performance of the savings you have chosen. To do this, it is advisable to keep in touch with your investment managers, insist that they update you on any important developments, and make sure they are available for any of your questions or requests. Savings are for many years - and so is your relationship with the financial consultant or bank (like Evolve Bank) who takes care of it for you. You should choose someone that wins your full trust.