Whether it’s cocktails on a beach in the sun-drenched Mediterranean or your forever home deposit, we’re all usually saving for something. But nobody said saving was going to be easy. Few people have a knack for it, while others are left scratching their heads, wondering where their money went. But fear not – here are five fantastic long-term saving tips for the not-so-savvy saver.
Not many people realise it, but their money is usually shrinking and becoming less valuable over time. Due to the rate of inflation – which is the rising costs of everyday things – your money is not as valuable today as it would have been a few years ago, even if you have the same amount saved. This is why you need to put your money in a savings account that makes your money grow over time, i.e., it pays you interest. Look for an account that pays you more than the inflation rate, which usually means having to use a fixed-term bond where your money is locked away for a year or more.
Finding a savings account that pays above the rate of inflation can be problematic in the modern climate. Unless you’re prepared to lock your money away for over a year, you’re probably not going to find a great rate. The other option is to consider the markets and invest in stocks and shares. This comes with more risk, but it is more likely to earn you above the inflation rate if you’re patient. Always do your research and explore the benefits of share trading as a day trader or long-term investor before starting.
Spending money on your card is too easy. With the touch of a button or the tap of a card, we can spend money without really thinking. A better way to track your spending – specifically your unnecessary spending – is to withdraw money from the bank each week and only spend in cash. This way, you see the actual value of your purchases and identify areas to save.
Getting the best deal on your household bills doesn’t end when you find the cheapest energy supplier and sign up for them. The industry cogs are constantly churning, and companies start to become cheaper and more extensive almost every month. You’ll need to stay in the know and switch suppliers when you can to save on ongoing bills.
Online shopping and subscriptions now make up a considerable proportion of our spending, especially disposable income spending. If you’re struggling to kick your retail therapy habit, at least try to make it cheaper by looking for online voucher codes with us at Coupon Kirin. And don’t forget to check out our summer sale deals.