Making your money work harder
Just like you need petrol to run a car, money provides you with the means to live your life. Big purchases, holidays, a wedding, emergency reserves to dip into if out of work … tuck
ing some spare cash aside regularly makes good money sense.
Picture this, you’ve just landed a cash bonus or been left a sum of money in a will, what saving vehicle will you choose? There’s quite a selection, each offering different terms and incentives.
Make An Action Plan
1. Ensure you set aside money for the short, medium, and long term. Each is important but without short term money the chances are that you will need to access your medium and long term money earlier and perhaps suffer penalties so ensure you have sufficient short term cash to meet not only emergencies but any short term cash projects (buying a car etc). We recommend that you have at least three months net income set aside for your short term needs.
2. Decide what is most important to you. Do you want to earn as much interest as possible and you are not worried what your money is used for or does it matter to you where your money goes?
3. How much investment risk are you prepared to take with your money? Short term money should not be put at risk so we recommend this element remains in a bank, building society or in national savings.
Shopping around to save
The first question you should ask yourself is; how quickly do you need access to the money? Would you be prepared to forgo instant access for a higher rate of interest?
Talking to us will help you:
- decide which saving facilities and features are relevant to you;
- pinpoint what you are saving for and how much you’ll need to set aside to reach that goal;
- compare the cost of any debts you have accumulated against the interest you are likely earn in savings
- source the most tax efficient savings account.
To discover new ways in which you can make your money work more effectively phone us 08456-123411