5 Steps to Save for the Future

Save for the futureSave for the future

All of us are prone to live for the moment, especially when it comes to managing our money. The truth is that we should all save for the future. The commercial world wants you to buy now and pay later (with interest).

To save for the future makes sense and with some thought and planning it can make your life simpler and happier. Whether you are doing this for your business or personal life start with a budget planner.

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5 Steps to Save for The Future

Step 1

Take an honest look at where you are spending your money. If you are not saving for the future or indeed are getting into debt this is going to be vital. Where are your funds going each month? What are non-essentials? Please be honest about what is and what is not essential. For example trips to the movies, eating out and sports events are not essential. Once you have identified these areas you will be able to see how much money you can save each month. This does not mean living without any pleasures and you can aim to build in some treats within reason.

Step 2

Look at the money you spend on essentials. Can you make savings? Perhaps you can change utility supplier, the places where you do your food / clothes shopping, and other such things. Look at everything you spend and see if there are lower cost alternatives. Also look around your home and see if you can reduce things like your heating bills by turning down the thermostat a little or adjusting the timer settings. You will be surprised how much we overspend due to complacency.

Step 3

Plan your new budget and put away money for future events. There are 3 saving goals. Short term up to a year, Medium Term 1 to 5 years Long Term 6 years to say retirement.

If you don’t have a pension provision that is certainly going to be a long term goal. Other things to consider are going to be expenses that will arise in the future. A new sofa can cost a lot of money so work out when you will next need one, the likely cost and how much a month you will need to save. Put away money for other things too that don’t come up every month and save for the future costs. This takes some effort but is going to make your life so much easier.

Step 4

If you have debts that are not going to be able to be budgeted for and are likely to drag you further down go and see a debt adviser to see if you can get agreements to have these written off or reduced rather than go bankrupt. This will of course affect your credit rating but if you have reached rock bottom and no amount of cutting back will help don’t wait a moment longer to seek advice.

Step 5

Now is the time to review your budget and to set reminders to check it every month and also set reminder dates to see if you can save money on such things as insurance renewals. Don’t be frightened to ask for discounts from your present suppliers if others are cheaper as many companies do like to keep their existing customers. They won’t offer cheaper rates to you unless you ask though!

Recommended Reading

Here is a list of books that you will helpful to helping you save for the future. Click on them to find out more.

The Minimalist Budget: A Practical Guide On How To Save Money, Spend Less And Live More With A Minimalist Lifestyle
 
The Money Diet – revised and updated: The ultimate guide to shedding pounds off your bills and saving money on everything!
 
How To Save Money: A guide to saving money when you’re already doing everything you can.

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