Money-Magnets.Net

A good savings plan has to be a part of any money management plan. It doesn’t matter whether you are savings a little or a lot, saving something every month creates a good habit and you’ll be surprised how much you’ve set aside at the end of the year. A good habit is to save save money. No that’s not a misprint. Save saving money is a concept I first heard about from Robert G Allen. In one of his training videos he mentioned that although people will boast about saving some money they will then spend it on something else rather than actually saving it all. To save save money you actually put the money that you saved away in a savings account so that you can see that you have saved money. If you watch your spending and saving habits you may discover that that you spend your savings without saving at all.

Once you have decided that you are going to save on a regular basis what are you going to do with it? In the UK bank interest rates are still low and earlier this month it was reported that they are going to stay low for some time to come (see chart 1.1 below).

If the prediction that the rate is going to stay low for some time is correct, then it’s more important than ever to choose where you want your savings to do the best for you. Most people will simply stick the money is their usual bank without even thinking twice but this could be losing them money. Look around for a good comparison website to check out the best saving accounts available. Make sure you are comparing similar interest rates and check whether the interest paid monthly or annually makes any significant difference to your savings. If you are putting away a lump sum for a long period of time expect to be paid a higher rate of interest.

If you really want to get a higher interest rate then there are some accounts where you attract higher interest rates by lending out your money to businesses. As with any account always read the small print to make sure you know how secure your money is and what guarantees you have to get your money returned to you.

Wealth quote:  If you would be wealthy, think of saving as well as getting -Benjamin Franklin