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18 Nov 2016

GETTING AHEAD – TREAT SAVINGS AS AN EXPENSE

It’s many peoples ambition to get ahead with savings, though it is also human nature to spend money that is readily available. A trick to defeating this issue is to treat savings as an expense. This is simple, when preparing a budget be concise with living expenses, car loans, other loans, credit cards and utilize surplus funds by adding savings as another expense. Remember, achieving long term financial goals is not a sprint so be realistic with the amount dedicated to savings, not matter how little. It is often a good idea to set up a different bank account, say an account with savings incentives and no keycard (especially pay wave) access. By setting up a direct debit from the account that pay goes into, the savings will be take away from spending temptation. Often it helps to make this a different bank (from your usual internet banking) so transferring creates a further hurdle. As long as the figure is realistic, you can forget about the savings account and check it in the future to have a pleasant surprise.

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