Top tips for saving by ING’s Be Good at Money explains that it can be easier to save if you have a goal – such as building an emergency fund, paying school fees, buying a house or one day retiring.
Paying off debts before trying to grow savings can be a good idea. And, importantly, just get started then boost the amount when you can.
The most important step of all is to actually start saving regularly, no matter how little the amount. Build the habit and increase the amount when you can.2
Saving is easier if you know what you’re saving for – and saving for an emergency fund (also known as a rainy day fund) is a smart goal to start with.3
Pay off your debts first
Otherwise you could well be paying more interest on your debts than you receive on your savings. Also, regularly check that you have the highest interest rate available – and put as much money as possible into these accounts.4
Pay yourself first
Save a fixed percentage of your monthly income, transferred automatically as soon as your salary comes in.5
Now and later
Balance savings that are deposited for a longer term with savings that you can access immediately.