Make sure that you have the cash set aside for the important moments in life.
You could be saving for a wedding, perhaps the holiday of a lifetime, a special birthday or just a fancy weekend away with someone you love. If we’re lucky, most of us will have many special occasions to celebrate as we go through life. And, when it comes to making sure that we can afford to really enjoy them, the ability to save is essential.
Savings tips for special occasions
Set savings goals. How much do you need for that special day? This is the baseline for saving for a special occasion and will give you something to aim for when putting money aside feels like a boring choice. It’s often a good idea to have two savings goals – the minimum and the optimum. Work out how much you’ll need to add to your savings each week or month to make either happen.
Review how you currently spend money. Do you use a budget? If not then it’s time to start – without one it is easy to fall into the habit of borrowing money on a regular basis, which can lead to a poor credit score and the need for loans for people with bad credit. Keeping track of the way that you already handle your money will give you tools to start making positive changes to generate savings. List your income and outgoings over the course of a month and then review how you spend. Where could you cut back to create income that could go towards your special occasion savings goal?
Consider investing what you have. If your special occasion is more than six months away then putting existing savings into an investment vehicle could be an easy way to increase them. Investing in stocks and shares is a riskier way to manage your cash – there is always the possibility that you may lose what you invest – however the returns are much higher. It’s often simpler to work with a broker when you first start out.
Look for ways to add to your savings pot. Do you have skills you could use to make a little money on the side to get you to your savings goal faster? From delivering food through to building websites or doing some basic gardening maintenance, most of us have a skill we can use to earn additional cash. The more you’re able to top up your existing income, the more you’ll have to help you reach that savings goal.
Put your money into a savings account. Right now, savings accounts don’t offer an enormous rate of interest it’s true. However, interest rates are on the up. Plus, if you’re able to lock your cash in for a minimum of a year, for example, you’ll have access to a more attractive interest rate.
Stay focused. It’s very easy to get distracted from a savings goal and to spend any spare money you have on things that perhaps you don’t really need. Find ways to ensure that you stay on track when it comes to your savings, whether that’s sharing the savings goal with someone else or using a budgeting and saving app to deliver electronic insights and reminders.