A Simple Saving Strategy for Challenging Times
While there are many points of debate surrounding Brexit, the economy and the impact on consumer spending remain the most pertinent. There are many compelling statistics to add colour and depth to these arguments, with Credit Suisse recently predicting that leaving the EU would cause a snap recession in the UK and shave 2% off GDP in the short-term. Business and consumer spending would also be hit considerably, so the citizens of Britain must be prepared for a significant financial fall-out after the referendum on 23rd June.
How to Save, Prepare and Build Wealth
in Difficult Times
With this in mind, it is important to develop a simple but effective strategy for developing savings and making your money go further. Here are three elements that can help you to achieve this: –
1. Make the Most of Your Savings with a Budget and Suitable Vehicle
To begin with, you will need to budget your finances accurately to determine a viable amount of monthly, disposable income. This will leave you with a regular amount that can be committed to savings, enabling you to plan your finances in greater detail and earmark an annual sum for investment. As you build your disposable income stream and subsequent wealth, you should look to invest in a high-yield saving account to help optimise your funds.
Kent Reliance offer savings accounts with interest rates of up to 4%, for example, so keep your eyes peeled for the best and most rewarding options in the real-time market.
2. Reduce the Cost of Everyday Spending
While the majority of these savings should be used solely to drive an annual return, you may wish to utilise some to reduce your everyday expenditure. By using a small percentage of your savings to purchase items in bulk (and while they are on sale) you can potentially eliminate one grocery shop per month and save a staggering 24% per annum on your grocery bill. This also has the added benefit of eliminating the need to use high interest credit cards, which over time can help you to save a total of 50% on everything that you buy while also reducing the risk of acquiring cumulative debt.
3. Develop Increased Disposable Income Levels
to Diversify Your Savings funds
The first two steps create a cycle of saving and accumulating money, which in turn helps you to grow your wealth over time. You can then use increasing disposable income levels to extend and diversify your savings portfolio, perhaps branching out into specialist investment accounts and entering the financial marketplace. If you do diversify, be sure to use a fixed percentage of your income to minimise risk, while also covering a range of broad markets to ensure that you do not overcommit on a depreciating concern.