We are living through tough times. The global pandemic has affected all businesses; some have thrived, some have crashed and burned. Though remember, the Phoenix always rises from the ashes. Low interest rates make savings in Banks or Building Societies unattractive. Maybe time to seek advice on other types of investment and savings plans.
The benefits of saving money are many. You do not have to be equipped with an Economics degree to understand about this concept. It has long been around from the time when money was printed. Saving money, especially in case of economic struggles is extremely important. However, it can actually be one of the most challenging tasks. You can never know for sure if you are going to be a victim of potential layoff, or getting cut for hours at work. Having enough savings that can help you and your family survive troubling times is indeed one of the smartest moves you can take.
Automatic Savings Plans – One of the Best Plans Ever
If you are looking for an effective means of saving, well an automatic savings plan can be the best options. But what is it exactly? It’s a type of savings system in which you automatically deposit fixed amount of money and at specific intervals to your investment account.
Most people save money just as an afterthought. When you receive your income, the money is being allocated to mortgage or rent, bills, daily expenses, groceries, among others. The only chance you will be adding money into your savings is only when there’s money left. Unfortunately, often there is never any amount of money left to save. At this point I will again recommend Harv Ekers ‘6Jars’ as a way of controlling your finances.
Thanks to the modern technology, it is now easy to start up your own automatic savings plan. If you actually have a direct deposit via you employer, you will discover one easy way of establishing this is for you to have parts of your income or paycheck straightly directed to a savings account. It does not matter if you are able to save 10 dollars of 500 dollars, simple being able to save money automatically will guarantee you that part of your paycheck is being saved every time you’re being paid.
Automatic savings plans have other advantages than the convenience and benefits of not having to deposit money manually to your account every month. Well, this kind of savings system makes it more convenient and easier for you to establish a strict personal budget, since it’s more difficult to dip into the savings or overspend once the money is automatically deducted from your paycheck. This system also aid investors to continue saving money into their portfolios. So, what now? Is it beneficial to have your own automatic savings plan?
If you have successfully saved money, you are rest assured that you will be able to surpass most challenging times, enabling you and your family to have a better life. Many people argue that to have a nest egg isn’t the only means that you have to take. They believe that they also have to invest the money to something. However, saving money proves to be a very smart and effective investment alone. Instead of using the money, you’re saving them for later purposes. Investing on something may only risk your money but if you take it for savings, you have the money in any case.