Tips and Suggestions on Money Saving

1. Tips and Suggestions on Money Saving It would be great if you could allocate a certain portion of your salary on savings. Saving is a great habit to follow. No matter how big your salary is; it is all useless if you don’t have money when you need it the most. So it is advisable to have a fixed saving plan to accommodate a safe future. Term Deposits A term deposit too is a great saving strategy if a person uses it effectively. It is kind of a deposit made at a financial institution. These short term deposits range from a period of one month to a maximum of two years. You cannot withdraw money as and when you need. You got to inform the financial institution in advance. This is the main benefit of these types of deposits. It forces you to make a saving and you know that you cannot withdraw money whenever you need. A term deposit would provide you a number of benefits. You will be provided with a fixed interest rate on your savings. You will be forced to hold your money till the period ends. Your savings will only grow since you cannot withdraw them anytime you want. You could enjoy the benefits of compounded interest rates in the long run with term deposits. Savings accounts As mentioned above it is very important to save a certain portion of your savings on a weekly or monthly basis. A savings account lays the foundation for a great saving strategy. It is up to you to decide the proportion of savings from your earnings. An average person saves around 10 to 15 percent of his/her salary. You could exceed this limit if your earnings are strong. You should decrease the withdrawals and increase the savings in order to manage a great savings account. It serves the purpose only when you save effectively. You shouldn’t be spending on unwanted things. You have to maintain consistency in order to prove the word. There are different types of savings accounts available. A normal savings account is easy to start up and operate and it provides you a market based interest rate. Then there are high interest savings accounts which provide you higher interest rates compared to the market rate. You will be subjected to certain terms and conditions within high interest savings accounts. A money market savings account provides you a variable interest rate depending on your earnings. You got to allocate a certain amount for savings as you get your pay check. That is the wisest thing to do. Dealing with credit cards A credit card could create a person and destroy him/her at the same time. It is very important to use the credit card wisely. Credit card compare assist you to make your selections wisely. You

2. should apply from a credit card which tallies with your needs and wants in the first place. Make sure you make the relevant payments on time avoiding penalty charge for payment delays. You should also be mindful not to exceed the limit when using a credit card.