As a professional in your thirties with a steady income, you already know that saving is an important part of creating a financially secure future. But most people aren’t saving as much as they would like to or need to, even if they are able to reach the recommended 15% of their monthly income.
While the first step is to actually save by making savings a regular part of your monthly expenses, you can do (or not do) a number of things that will allow you to save a bit more than ever before.
Here are three ways to start saving more this month:
1. Don’t incur more debt than you have to
As long as your financial debts are worth more than your income, you’re not going to be able to save. While it might be tempting to buy a new car or spoil yourself with a credit card fuelled shopping spree, delaying these monetary pleasures until you are better able to afford them will allow you to live within your means as well as free up some much-needed cash to add to your savings plan.
2. Embrace DIY
You might have the money to pay someone to do everything from hanging pictures in your new home to maintaining your garden or washing your car. However, many of these tasks can actually become DIY activities, saving you precious cash every month. Access to the internet, for example, means you can teach yourself to do many of the things you might be paying someone else to do e.g. taking care of your swimming pool. Of course, certain tasks are best handled by professionals but others are easier than you think. And you might discover a new interest or hobby along the way!
3. Take care of your RA
A retirement annuity is an important savings tool for ensuring a financially secure retirement. As a form of ‘enforced saving’, you will not be tempted by these savings before they are due to be paid out to you. Pay as much as you possibly can into your RA monthly and treat it as a serious investment, committing to never defaulting on a payment. An RA also has some useful tax benefits so you’ll save there as well.
Saving for future goals should be an essential part of your wealth management plan but it can be difficult to do in today’s financial climate. That is why it is essential to plan savings rather than hope they will happen or try to squeeze them in at the end of a month of spending.