Regular Saving


Converting today’s income into a lump sum for later use builds capital and provides greater financial security. In order to be successful at saving on a regular basis you will need to lay the correct foundations.

Budgeting

Having an accurate record of your income and expenditure will enable you to see what your standard of living costs. You will also be able to see where your money is spent and make better judgments on what you can afford to save and spend.

Emergency Fund

Having calculated your budget, you should have between 3 and 6 months of expenses set aside for emergencies. This could be for a for an unexpected flight home or car repair for example.

The objective of this element of your savings is not to generate a return but to prevent borrowing on credit cards or disturbing long-term investments for short term cash-flow needs.

Objective

Once you have your budget and emergency fund it is important to know what you are saving for. Your target needs to be SMART – specific, measurable, achievable, relevant and timely. For example; to retire to Spain at age 65 with an income in today’s terms of EUR5,000 per month. This will mean that you are able to track your progress towards your goal more accurately.

The clear the picture you can paint for yourself the easier it will be to save and the more motivated you will be towards achieving your goal.

Saving

When saving, there are many things to consider: how long you are saving for, risk management, charges, whether you need advice or not etc.

Saving on a regular basis rewards discipline. Making contributions regardless of the market conditions has been proven to provide better returns than attempting to time the market.

You should review your savings at least annually to ensure they are still on track and to take action if they are not.

What Should I Do Next?

Please contact us for more information on regular savings plans.

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