Tuesday, 26 May 2015

ERE12-SavingsAccount

I have had a savings account since I was six, a bank card since I was fourteen and had my own financial control since I was sixteen. Still, establishing a savings account is a good advice.
It is all about the savings part of it.

Banks are not always to be trusted, but the purpose is to get into savings mode. Keep the money saved and to make them make babies. Money in a savings account make money.
How much you can save is up to you, half of your salary is a good starting point. It may take a while and maybe you end up deciding that you are not interested in saving. That is fine, it is up to you.
Do at least have a couple of months budgets saved for those days when it really rains. It is very, very expensive to fix problems without money, even more expensive than saving the money in the first place.
Think again about what I just said and make sure you understand what that means.

The best favour you can do for your future self is to keep the saved money saved as long as you can.
Invest it if you must in something permanent. Education? Property? Avoid investing it in holidays and potato chips.

Keep your savings and the babies of your savings unlocked as long as you can. Meaning you keep them in financial instruments available for you, that you understand, that you trust (-ish) and that you can sell/ move around at will. Don't lock them until your retirement. You live and change now and your choices of tomorrow are completely unforeseeable for you of today.
Trust me on this - this I know. This is why I pen these advice in this blog.
The future is beyond your imagination of today. Get ready!

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