| Introduction |
| Why save? |
| How much should you save |
| How to beat low rates & risk |
| Savings options |
It is getting more and more important for people to save – to put substantial sums aside for retirement, a ‘rainy day’ or for those big life changes. State retirement support is gradually reducing, shifting the onus onto individuals to provide for their own long-term financial security. At the same time economic slowdown and stock market volatility have eaten into many people’s nest eggs, and the general costs of living and also of major life commitments such as raising children and university fees have risen sharply in recent times.
Against this backdrop, saving is fast becoming a thing of the past, a luxury many of us think we can no longer afford. A recent survey, conducted before the onset of the credit crunch by unbiased.co.uk revealed that almost three quarters (70%) of people believe they are unable to save any more than they already are. Belts are being tightened and disposable income is falling all the time. So how can you save as well as stay on an even keel?
Firstly, you can take a good look at your monthly income and outgoings, and redress the balance between a ‘want’ and a ‘need’. This could leave you with more spare cash than you thought – cash which can be put away each month soon builds up. And cutting down on a few luxuries that often pass unnoticed could make a huge difference to your long-term financial security.
This guide aims to give you the information you need to start budgeting, and to plan how much you can afford to save. It also offers some background to the various types of savings products you should consider. However there is no substitute for genuine expert unbiased savings advice. At the back of this guide are details of how you can find independent financial advisers in your area.
So what are you waiting for? Take a moment now to review your spending, consider what you could be saving, and start paying yourself first – put a bit aside for yourself, no matter how small. It’s time to get saving!
David Elms
Chief Executive
IFA Promotion Ltd.
