Savings: The Basics Before deciding what to do with your money, it’s important to have a plan. Here are some simple steps to get started. Set your savings goal: In order to start saving I always ask clients the question; ‘What are you saving for?’. It is a lot easier to save if you have an end goal waiting for you. The Reality: While we would all like to be saving for a fancy new car or house depending on each individual circumstance this may be unrealistic. It is very important to draw up a rough estimate of how much money you would need in order to turn your goals in to reality. Decide on a budget: Now you should be able to work out approximately how much you will need to save on a monthly basis in order to achieve your savings goal. At this point you will see how realistic your targets are. You might need to re-look at your monthly expenditure and ways to reduce your spending in order to maximise your savings budget. Are you a regular saver or lump sum investor?: Whether you intend to save regularly over a number of years or you have a lump sum to invest, you need to have a plan that matches your own personal circumstance. The days of having a deposit account in a bank and expecting a decent return are in the past. The returns generated in these accounts are minimal if positive at all. There still exists a psychological association between savings and deposit accounts and this needs to change. If you have money in a deposit account and you want a flexible plan with the potential to make investment returns in excess of what the bank may be offering don’t delay and call Stability Financial Today to speak with a Financial Adviser.