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