How To Go About Saving Every Month

We all agree that it can be difficult to save each month, especially with the cost of living and expenses that just seem to escalate on a monthly basis. It is however essential that you make some sort of long term plan to save something each month, even if it means going without that new pair of designer boots that you have your eye on. Apart from saving for your retirement, which most people do by contributing to a monthly pension fund, you also need to have funds set aside for a rainy day. There is nothing worst than your car needing urgent repairs and you not having the funds to get it done. Make sure that you have a separate account with at least six months worth of Salary put away, as you never know when you will need it. At least if you loose your income for a while you will be able to survive for a while. The best way to make sure that you put away something each month is to have a set debit order going off your account on the day after your salary comes in. That way you won't be able to spend it. There are plenty of endowment policy type plans or even tax free savings plans that you can contribute to each month, and you will be amazed at the growth with interest after a couple of years. Even as little as a R100 per month can go a long way to making your future more rosy. My Dad always used to say - save 10 percent of your monthly income, then at the end of each year you can take 10 percent of the interest earned for the year and treat yourself to something special. The first few years may just be a chocolate or item of clothing, but after that you will be amazed at how compound interest can make your savings grow. Also most of us know that just having a pension is just not going to cut it for the future, you need to make sure that you are as financially stable as possible well into your golden years.