Once you understand the importance of savings, you need to know the best way to develop the savings habit. Here are some suggestions:
· Do it straight away: Put money into your savings account on pay day or set up a regular bank transfer from your salary account to your savings account.
· Be regular: It is important to maintain the savings habit. Even if your financial situation changes and you are unable to save as much as before, it is a good idea to keep trying to save at least some amount each week or month.
· Create a financial plan [Link to the article titled “Beginners three-stepped guide to financial planning]: Set some achievable goals (the reasons you are saving money) and budget your income by how much you need to spend and how much you have to save.
· Pick the right account: Talk with your bank about the best account for your needs, as well as the best options for you to make interest on your savings. If you are a long-term saver, don’t forget the benefits of compound interest.
· Don’t spend pay rises: Whenever you receive a pay rise, try not to ‘upgrade’ your lifestyle with more expensive restaurants, nicer holidays, fancier clothes etc. While it is tempting, maintaining a modest lifestyle will mean you will reach your savings goals a lot faster.
By now, you will appreciate the importance of savings and the best ways to get into the habit of savings. Remember, it is never too early to become a saver. Even a small amount, saved on a regular basis, will eventually add up. So don’t wait – start your savings journey today. And more importantly, you should also prepare a protection plan for your finance and savings against the unexpected risks. You can always speak with a Chubb Life Vietnam who will discuss your needs and explain the solutions that are suitable for you.
