I want to jump in, as they say, head first. Saving is a necessity to building long term wealth, achieving goals of travel, buying a house, or paying for your child’s education. It can also be great to have some stashed away for a rainy day. But with so many opinions out there how do you save? How much should you save? And where do you put your money?
It can all be extremely overwhelming! Trust me! I have been there! So, I have compiled 3 questions which have always helped me determine this for my savings goals:
When do I need the Money?
If you have a set date for a vacation or for studying you will know how many years/ months you have to save for. You can also determine where you can get the best interest, and many even invest the money for long term goals.
However, for an emergency fund or short-term goals you don’t know when you will need the money and could need it fast! So, you want to earn decent interest with quick access.
When will I start?
By working out when you can affordably start, means you can work out how long it will take and how much you will need to save monthly/ weekly. This is a key part of personal finance tips.
How much money do I need?
This will help you determine how much you will need to save how often. You can set up automatic transfers to save the money before you are tempted to buy another pizza 😉 By asking these questions you will know how much you will put away periodically, how long it will take you to reach your goal, where to store the money, and let you ace those savings goals. The most important this is to do what works for you! Every person is different both physically, mentally, and financially. Be you and be proud of who you are.