How crucial it is to be savings savvy

Most people nowadays are earning money from their nest egg. Savings plans offer the much-needed peace of mind when things go awry

08:35 23 December 2013

The saving culture has found its way in society at a rapid pace. Most of the reasons attributed to this are the peace of mind that is associated with it. You never know when you might need to access it. For saving to be effective, it is important that you start with this habit as early as possible.

The following article highlights what you need to know about the culture of saving and how to be savings savvy.

Getting their 0 Per Cent Interest Credit Card

0 per cent interest rate credit card is a great place to start when you want to manage your spending. Now the greatest hurdle to starting on savings is credit card debt. You can go around this problem in two ways: get the 0 per cent interest rate card or pay your credit card in full.

Keeping Something Extra Under the Mattress

When the banking crisis came to the fore, people became incentivised to keep money in jars or under their mattress. Banks savings accounts were viewed as being unsafe. The gains in interest were eroded by huge inflation rates.

Exercising Discretion When It Comes To Bank Accounts

Current accounts that pay well are possibly the best savings plan that you can have. However, if you don’t, then you should put your money in savings accounts. ISAs are a great place to start especially if you are a tax payer.

Mortgages and Savings

You should look into offset mortgages if you are looking to reduce your debt in the long term. Choosing to direct your savings funds to offset the sum you pay back on your mortgage loan is a very wise move.

Savings Accounts For Children

Putting some money in your children’s savings accounts ensures that you take care of the future needs. The odd £10 here and there, the pocket money they earn from their grandparents and so on can actually add up to a good amount. Stash it away now and see them enjoy it when they are in need of some cash.