21st September 2016

3 ways to make the most of your savings

Let’s face it, bringing up kids isn’t cheap and like lots of parents, you might struggle to save for the future. However, there are ways you can make putting money aside simpler. Here, we take a look at a few tips that could help you build your savings.

Choose the right products
Firstly, make sure you’re savvy when it comes to choosing your savings or investment products. With interest rates at an historic low, many savings solutions are providing very low returns. If you’re not careful, the money you put away might even fail to keep pace with inflation. Fortunately, there are ways to maximise your returns. For example, opting for an Individual Savings Account (ISA) will ensure you don’t pay any tax on interest you make. However, ISAs can vary considerably in terms of the returns they offer, so it’s essential that you look out for a competitive rate when you’re choosing one of these products.

You may also want to consider investing money in stocks and shares. As long as you make wise choices, this can lead to considerably higher returns. You can choose from a range of options to suit your approach to risk and your practical needs. To help you make informed, confident decisions, it’s useful to speak to a financial adviser. Bear in mind that some companies will only accept applications for investment products that come through these experts. For example, if you want to take advantage of the regular premium policy RL360° Quantum, you will need to make your application through a financial adviser.

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Make regular contributions
Organisation is key when it comes to successful saving. If you simply wait and see how much money you have left in your account at the end of each month when you’re deciding how much to put aside, you might struggle to meet your goals. Instead, it’s much better to set up regular payments into your savings or investments. If the money leaves your current account automatically – ideally shortly after you get paid – you won’t be tempted to spend it on other things.

When you’re working out how much money you can afford to put away, it helps to do an analysis of your income and your outgoings, including all your bills and living costs. This will enable you to establish how much you can realistically save each month and it could also help you to identify areas where you’re wasting money. Whether it’s too many takeaway meals or frequent shopping sprees, there could be a range of areas where you can make cutbacks.

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Set clear targets
Having clear goals in mind can make it much easier to maintain discipline when it comes to saving money. For example, you might decide you want to build up a certain level of funds to give yourself peace of mind that you’ll be able to cover emergencies, such as an unexpected loss of household income. Other savings goals can include anything from enhancing your financial security in retirement to funding your children’s education costs. Each time you’re finding it tough to continue putting money aside, remind yourself of your objectives.

Even though it might not always be easy, saving money for the future is hugely important. By following these pointers, you should find the process more straightforward.

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