Of course it is always a nice idea to have some savings on hand for unexpected expenses. However, not everyone succeeds equally well in saving regularly. That could be because you are on a low income, have had a financial setback, or are spending your money faster than you think. In this article you can read how you can best save money.
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How should I save?
Various studies have shown that you save faster if you save purposefully and consciously and if you have a good insight into your financial situation. Many people do not know exactly how much money they spend and what exactly. As a result, they spend more than necessary. Maybe you can save on groceries, or you can save on your insurance if you take a closer look. This way you not only have more money left to save, you also see how much you can save. If you know this, you can agree with yourself to transfer this amount to the savings account every month instead of an amount every now and then.
Conscious saving also means that you set specific goals. How much savings do you need to build a buffer and how much do you need for that vacation or new car? How much time do you have to save this amount together? Based on these points, you can create a realistic savings plan that allows you to save specifically for your goals.
How to save on a savings account?
An important part of saving is the savings account you choose and at which bank you open this savings account. The savings account must match your savings goals and of course you want pleasant conditions and good interest. To find out if a bank is safe, check whether it is covered by the Deposit Guarantee Scheme. This system guarantees up to 100,000 if the bank goes bankrupt.
The two most well-known savings are the ordinary savings account and the savings deposit. On the savings deposit you fix an amount for a fixed period at a fixed interest rate. The longer the money is fixed, the higher the interest that the bank pays. A freely withdrawable savings account yields variable interest. So it can get higher or lower. You can deposit money into the account at any time and you can always withdraw money.
How do you save money on a deposit?
A savings deposit is especially interesting if you want to put a certain amount aside for a while, for example to pay for a renovation that you want to carry out in two years. Do you want to save for a buffer or flexible savings for your savings goals? Then it is best to choose a freely withdrawable savings account. There are also intermediate savings, such as the bonus interest account and the flexible deposit.
Tip! If you know which type of savings suits you, then compare these savings accounts well on interest and conditions. Make sure that banks have stable high interest rates and attractive conditions.
How should you save? Tips
Below are some more tips to make saving easier.
- With many banks, it is possible to automatically transfer an amount from your checking account to your savings account every month. Especially if you do not have the discipline to transfer money to your savings account every month, this is a good way to go.
- Many banks allow you to create piggy banks in your online environment. You then create a number of piggy banks within your savings account, each with its own label. This way you can save per target. You can also open various savings accounts for this.
- Putting your holiday pay, end-of-year bonus, tax refund, or any other financial windfall right into a savings account will prevent you from spending it all. You have to put it back in your payment account before you buy something and this means that you have to think before you spend it.
- Give yourself a fixed budget for groceries and other expenses every month. If you have more money in your payment account, you transfer this to your savings account. If you seem to need it, you withdraw the money. But if you don’t need it, you can’t spend it on unnecessary things.