Most people experience challenges when it comes to keeping some cash for use in the future. Especially as parents, it is crucial for you to focus on your long-term goals. The goal could be to save money for home renovation, purchase a car, buy a home, or start a business. To succeed in saving the target amount, you have to start monitoring your spending habits and reduce expenses. Here are some of the best saving boosting products on the market.
Open an Individual Savings Account (ISA)
Opening an ISA at your preferred financial institution is one of the best products that will boost savings. At the end of every week or month, you deposit a certain amount of money in the ISA account. It will help you grow savings efficiently without paying taxes, as you are limited to £20,000 each year. Once you lock your cash in the deposit account for a fixed period, you earn an interest income which adds money to your account.
Automate Savings (Use an App)
To boost your savings further, it is crucial to automate savings into your ISA. You can you use automated programs to transfer a certain amount of money to your account. You can set the app to deposit at payday or several times during the month.
No Credit Card
To increase your savings, limit access to cash in the account. Put the funds in your savings account, which is not linked to a credit card.
A lifetime ISA can help you increase your savings. You can use the cash to purchase your first home or use it after retirement. Once you save £4,000 per year, you get 25% bonus in your account from the government. The maximum amount is £1,000 and age limit is 50. Additionally, lifetime ISAs can have cash or stocks or combination of the two.
Help to Buy ISA
In case you are saving to purchase a first home, you should consider keeping cash in a help to buy ISA. The account attracts a government boost of 25% of the amount of savings. The maximum bonus is £3,000. It is available for first time home buyers.
Stocks and Shares ISA
The account allows you to invest your money in a flexible and tax-efficient manner. It offers higher returns than a cash savings account. The gains are tax-free, and you can invest up to £20,000. The stocks and shares ISA allows you to invest in the best portfolio. You can spend on shares, cash, bonds, or commodities, but remember, your capital is always at risk.
Paying old debts such as education loans, will not only improve your credit score, but also boost your ability to save. Once you have repaid all old debts, you can focus on increasing your savings. Subscriptions To increase your savings, you need to reconsider whether you need various subscriptions services. You can reduce payments to magazines, premium channels subscriptions among others to lower monthly bills and boost savings. Do you really use that gym membership (be honest)? Can you reduce your phone bill?
Coffee and Other Unnecessary Spending
If you love coffee, you can cut daily visits to café and start making coffee at home. Importantly, reduce shopping on items not in the budget.
Consult a Financial Advisor
Set aside some cash to purchase a book on savings tips or consult an advisor. The guide will motivate you to continue savings and we love stuff that motivates you!