Being intelligent with your finances can allow you to lead a comfortable lifestyle and build towards a brighter future. While it is important to treat yourself occasionally, it is also important to secure savings for the future so that you can retire and live these years doing what you want. Additionally, having savings is important in case you encounter any unexpected expenses which can be difficult to manage otherwise.
Of course, saving for the future is easier said than done especially if you are currently on a tight budget. Fortunately, there are always steps to take which should help you to build towards a brighter future. The earlier that you start doing these the better, but it is also never too late to start being more intelligent with your money.
Setting up a savings account is a smart move and you can automatically set up payments to be made directly into this account after you have been paid. This should be viewed as paying your future self and by setting up automatic transfers you will never miss it as it will be in your current account for so little time.
Help to Save Schemes
It can be difficult to find the self-discipline to save which is why help to save schemes are so helpful. These are schemes for those receiving Working Tax Credits, Universal Credit and Child Tax Credit and involve employees earning 50 pence from the Government for each £1 that they save. If they are able to save £50 each month, this would see them receive up to £1,200 in tax-free bonuses over 4 years. Employee savings can be added to directly from their salary so that they are able to save without remembering to.
The workplace pension is another great way to save towards the future with tax breaks yet an area that many employees ignore. Employers are legally obliged to make contributions to your pension and the amount will depend on how much you are contributing so it is worth finding out how much you need to add to get the maximum contribution. Review how much you are contributing each year and try to increase this amount where possible, especially if you get a pay rise.
It is important that people learn how to be intelligent with their money so that they can live a comfortable life and save towards a future so that they can enjoy their retirement. The earlier that you start the better, but it is never too late and the above are just a few effective ways to give your savings a boost. The key is to educate yourself on the best ways to save and to figure out how much you can realistically set aside each month – remember, this is paying your future self and not money that you are losing.