Saving up for later on in life always feels so far away. You’ve got bills to pay here and now, how are you supposed to afford your later life needs too? And that’s where saving becomes an intimidating subject – you’re going to need money in 40 or 50 years time, and most of it needs to be saved now! Indeed, saving as soon as you’re able to is always a good idea, but if you couldn’t do that when you were 20, now’s the second best time to start. And that’s what we’re here to help with. Check out the tips below to make building a lifetime savings pot much easier.
Start with Small Investments
Small investments are great for dipping your toes in the water without losing too much. Buy penny stocks here, keep an eye on the real estate market there, and even consider cryptocurrency (albeit well known, well established coins). If you buy small now and slowly accrue things like shares over time, you’re much more likely to make a profit further on in life.
Pay Into a Pension
Pensions exist for us to pay into now and then reap the rewards later. As such, they’re the best way to save up money for later on life, especially considering your employer is able to match your yearly contributions. And the longer you delay taking a pension, the higher the final amount you’ll have access to will be. So if you plan to work for the next 30 to 40 years, this is your chance to put away around 20% of your yearly salary to ensure you can live in luxury when you’re retired. A bit a month won’t make too much of an impact on your budget!
Switch Accounts Regularly
The bank account you hold now has a good interest rate, but that may not last for much longer. As such, be sure to switch your accounts regularly, especially if other banks are hosting incredibly beneficial cashback deals right now. You can easily earn an extra hundred by switching and holding an account for a certain period, and when that grace period is over, you can do it all again with another bank. It takes a bit of time and effort to max out your gains like this, but it’s absolutely worth it!
Leave Any Saved Money Alone
Finally, once you’ve saved up some money, try to leave it in an account for at least 5 years. This is the minimum period of time for you to earn some real interest on the money, or for an investment account to net a good return for you. So put some away bit by bit and then let it do the hard work while you just forget about it – it’s an easy thing to do if you’re easily meeting your household budget.
Saving a good amount of money for later life takes time, but thankfully you’ve got plenty! Start saving now for the best results.