Practical tips for boosting savings in tougher economic times

There is an old proverb that says, “The art is not in making money but in keeping it.” That’s because, regardless of your income level, learning to save is a fundamental skill required for building a strong financial future.

During times of economic uncertainty, like the present, boosting savings where possible is even more important.

At First Financial, we help our clients retire life ready.

Forming a solid foundation through savings is crucial for reaching that goal. If you’re ready to get started, here are some practical tips for boosting savings.

Sometimes, before you can make the big commitment to save more, you really have to understand the why. Often, people find themselves highly driven when they have specific goals in mind such as planning a holiday, organising a wedding, buying their first home, or anticipating the arrival of a new baby. This motivation stems from a clear understanding of the purpose behind savings. However, it is equally important to save for unforeseen circumstances.

Savings can help us become financially secure by keeping debt under control and providing a safety net for a rainy day.

No one can predict the future. Things often happen that are out of our control such as an accident, the death of a loved one, the loss of a job or the breakdown of a marriage.

Consequently, saving must become a habit. It must be part of your regular financial routine. If you want to have a sufficient emergency fund, aim to save about three to six months’ worth of living expenses.

To achieve your goals, start by taking action and setting realistic expectations. Determine what you can afford to save monthly and define achievable targets. You’ll need to create a budget that prioritises the allocation of savings. By staying focused, you’ll make steady progress.

It is also prudent to reduce non-essential spending, limit credit card usage and seek savings on regular bills (e.g., groceries, energy and insurance). Additionally, consider setting up direct debits for regular expenses to streamline payments and avoid missing any due dates.

If you need help selecting a savings account that will suit your short-term objectives, our experienced team at First Financial can help.

If you are determined to bolster your savings, adopting a sensible approach to reducing expenses can create substantial opportunities for saving within your budget. Start with some of the big ones, like utility bills. Contact your service providers and try to negotiate a better deal or shop around for more affordable alternatives.

For groceries, buy in bulk where you can and use any discounts available. Meal planning and cooking in bigger batches can also help you save on your grocery bill. For all your shopping needs, take advantage of cashback apps, reward programs or loyalty points. Before making big purchases, ask yourself if you really need or want the item.

Finally, adopt energy saving habits at home. Turn off lights, unplug appliances and use energy efficient bulbs and other products. It’s good for the environment and great for your budget and savings goals.

Essentially, spending less allows you to save more. Regardless of your income level or budget, the truth remains the same: the more we earn, the more we tend to spend. Therefore, everyone can benefit significantly by identifying areas where they can cut back spending and increase their savings.

Once you’ve mastered the little things, saving for the long-term becomes part of your financial life. Building wealth is attainable for everyone, as long as they start early enough and use a systematic approach. Here are a few practical tips for reaching your long-term success.

Keep your long-term retirement savings and goals in mind while making purchases in the present. Avoid high-interest debts and loans as they can quickly erode your savings and impede your progress towards your goals.

Another way to enhance long-term savings is to increase your earnings. Assess whether advancing in your current role is possible – or is a career change on your mind? Additionally, contemplate starting a side hustle that can bring in extra income. There are numerous options available to boost your earnings.

Finally, invest wisely. Diversification into a mix of assets spreads risk and maximises returns. At First Financial, we create investment portfolios designed to endure market volatility while consistently generating income. We can help you make educated investment decisions and find the right savings solution for you.

Retirement presents an opportunity to pursue all your personal aspirations beyond your professional endeavours that may have been on hold while you built your career. With a well-crafted savings and retirement plan, you can confidently achieve these dreams.

At First Financial, our experienced, approachable team focuses on helping our clients achieve financial security. We use a straightforward five step approach to create a plan that enables you to enjoy life, retire comfortably and have all the financial support you need to enjoy the retirement lifestyle you want.

Remember, small steps can lead you to your destination. The first step is obtaining the right financial advice. Talk to us today to learn more about our savings and retirement planning services.

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