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Sort Out Your Family Finances: Savings and investments

by Bob Reeves

People save for different reasons. Some savings plans are short-term perhaps to pay for a big purchase like a holiday or wedding. Other people have long-term savings plans either for a ‘rainy day’ or for their retirement.

If you have spare money at the end of each month, then it makes sense to start saving this rather than just frittering it away. It is a good rule of thumb (if you can) to have about six months worth of money in a savings account just in case something unforeseen happens such as redundancy.

In common with all financial services, you need to shop around to get the best savings product and the best deal. Deals change all the time and banks and other providers often do special offers to attract new investors. Comparison websites and best buy tables in newspapers are good places to start.

Longer term, you should look at a pension. Assuming you have paid your national insurance contributions for long enough you will be entitled to a state pension but you may want to supplement this with your own scheme. There is some controversy over company and private pensions but the basic rule is that the earlier you start saving and the more you put in, the more you get later.


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Sort Out Your Family Finances: Teach Yourself

Sort Out Your Family Finances: Teach Yourself
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