08 Mar 2017
Saving money can seem like a big mountain to climb for a lot of people in Ireland. But the good news is you don't have to give up everything you love to get to the top. Turning saving into an overall habit, day-to-day, is a sure-fire way to success.
Warren Buffet didn’t amass a $60 billion fortune and become the world’s third-richest person without knowing a thing or two about saving. He once said that the biggest mistake a person can make is “not to learn the habit of saving properly”.
If you save regularly in a long-term savings account then the rewards can really add up. Albert Einstein had some pearls of wisdom about this one: “Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… pays it.”
It’s not rocket science, so here are six smaller habits of a regular saver to get your savings account ticking over nicely.
Plan ahead: A shopping list shouldn’t only apply to the supermarket - before stepping foot anywhere good savers know what they need, avoiding any unplanned purchases. Super savers limit the cash in their purse to a certain figure each week and they don't spend over that amount.
That frees up extra money to top up their monthly savings.
Put themselves first: Setting up direct debits that instantly pays the bills and puts a realistic lump sum into their savings account each month is an essential habit of great savers in Ireland. It'll leave you in the know of what you can enjoy each month, guilt-free. You can make a “Payday Promise” too. That’s where you set up your regular savings amount to come out of your bank account on the day you get paid so you can’t get tempted to weasel out of it.
Know the cost: Regular savers are successful because they know the cost of things and are never afraid to tot up balances. Make comparing prices your second nature! There are loads of good price comparison sites online like uswitch.com and bonkers.ie.
Have goals: Saving for that new car or the holiday of a lifetime? Super savers keep their eyes on the prize and remember their incentives every day. Some of them put up a photo of the beach they will be holidaying on or the car they are saving for to keep their goal front of mind.
Are open to change: Great savers embrace change and see the positives in cutting back. Look at something you do once a week that you can live without. Ordering takeaway just once a week can cost up to €20 per head – that's at least €1,000 a year. One small change like this will make a big difference to your savings account balance. There are loads of areas you can cut a few corners on.
Not buying a coffee every morning on the way to work could save you €750 per year. Giving up the smokes could save you €4,015 per year. That’s pretty incredible.
Are realistic: There will be many instances throughout the year when prices will fluctuate. Regular savers roll with the punches and prepare for when heating and electricity bills will be higher. Let yourself loosen or tighten the purse strings as needed for Christmas and birthdays, for example. But the opposite also applies. If you come into money – like a tax rebate or an inheritance – do the sensible thing and try to save at least half of it! If you do get a lump sum, we’ve got special savings products for those too.
Before you know it, it won't be such a struggle to save - even emptying your pockets into the change jar at the end of each day will become a habit, leaving you with even more cash to pop into your savings account. Success!
Take control of your future and book a free Financial Review Today
To find out more about the EBS Family Saver Account just click here. Why not book your free financial review with EBS now to take the hassle out of your finances? We’ll look at your personal goals and help make your future a lot brighter.
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