New Year Finances: Best Way to Save to Ensure Security For You And Your family

Filed in BANK, BANK LOANS, Finance, Financial Empowerment by on December 6, 2021 0 Comments

Come 2022, many are starting to plan their financial goals for the next year, and Atom bank has shared ways to provide financial security for you and your family – Best Way to Save to Ensure Security For You And Your family

Studies show that around 80 percent of New Year’s resolutions fail, and most are forgotten by February. But Clare Framrose, head of savings at Atom Bank, shared her expert advice on how a little planning and preparation can help families reach a safe and financially healthy 2022. Let’s ride on!

The COVID pandemic has demonstrated the importance of financial security and emergency savings in the worst-case scenario.

With the future of pandemics, the workforce and the economy still volatile, many want to make sure their families are self-sufficient no matter what the future holds.

Atom Bank found that saving for a secure future ranks second in British citizens’ motivation to save, nearly losing their savings for the holidays.

Ms. Framrose shared that no matter what she really saves, saving should be part of a person’s normal routine.

He advises savers to make regular transfers to their savings accounts for the day after the payment is made.

Saving one’s monthly savings as soon as they receive their paycheck is a highly recommended savings strategy, commonly known as “pay yourself first”.

Framrose recommends long-term fixed savings accounts where withdrawals are out of the question or involve high costs.

This makes a person less likely to spend their savings on impulsive or unnecessary purchases, making them think twice whether the item is worth the money.

Also, fixed savings accounts often have higher interest rates than easy access accounts, meaning money can grow faster over time.

But Ms. Framrose warns savers to also have instant savings accounts that they enter regularly or have easy access to.

“This way you will also have easy access to some funds in the event of an unexpected emergency.”

Many financial professionals also recommend setting savings goals as the amount they want to save or the amount they want to save each month.

Having both allows one to follow a savings plan, providing financial stability and security for a household without having to do much if payments to savings accounts are automatic.

Framrose advised: “I would recommend doing some research on your own finances to help you come up with rough numbers to target.

Still On Best Way to Save to Ensure Security For You And Your family

“For example, your normal three-month living expenses might be a good amount for an emergency fund. Once you have the number in mind, it’s easier to keep targeting it.”

Atom Bank also shared that those looking to start or start a family should expect an average cost of £11,498 for the first year of a child’s life.

Roughly speaking, this would cost £150,753 to raise a child from birth to age 18.

Ms. Framrose recommends creating a savings buffer before starting a family to reduce the financial stress of raising children.

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He proposes a unique strategy for this: “Start by estimating the ongoing costs you can expect to pay after having a child, and then pretend the baby is born, so you can start incorporating that number into your cash flow first.”

Converting the money to be spent on her new child into a fixed savings account will not only mimic the financial situation after the child arrives, it will also give a head start on the savings buffer.

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