There are many reasons to save. You might want to guard yourself with a buffer or save for retirement or a trip. But how much should one save – and how often? Here are some tips on how to orient yourself in the jungle.
The very first thing you should do is set yourself a goal
What do you want to save for? Depending on whether you are looking for short-term or long-term savings, it will affect how much you set aside each month.
If you want to save the long-term, we recommend saving about 10% of your salary each month. Transfer money to the savings accounts as soon as the salary comes into account, instead of waiting until the salary is almost used up at the end of the month. A good start to saving is to review all expenses and cut down on what is unnecessary. Do you really need to buy lunch in the canteen every day? Or buy two pairs of shoes each month? Probably not – put the money into the savings account instead.
If you save short-term for a major purchase or travel
Try to save more than 10% of your salary. Decide to spen only the essentials, such as housing, food and bills. At the same time, you cut down on unnecessary expenses – such as clothes and things. Saving this way can work for a short period, but rarely in the long run.
We at Ruby Twins Bank offer a savings account with a good savings rate, perfect for both long-term and short-term savings.
Only if you decide to start saving will it be easier! Here are four simple steps to help you get started:
- Set goals, what do you save for? This can determine how much you put aside each month
- Transfer approx. 10% to the savings account as soon as wages tick in
- If you save for something in the near future, such as a major purchase or travel, you can save more
- If necessary, cut down on unnecessary expenses and prioritize what you really want to spend money on