Make Saving a Habit

Learning to save money from your take home pay every week is an important skill in reaching financial goals. As a rule you should try to save a minimum of 10% or your income, of course if you have high interest debt it is probably a good idea to use your allocated savings to help pay it off quicker.

While 10% may not sound like much, especially if you are not earning a lot at the moment, it can quickly add up! For example, say your take home pay is $800 a week and you open a high interest savings account with a $100 deposit and then add to it $80 a week. At a return of around 5% by the end of five years you will have $23,695.

If you can't afford 10% try 5% it doesn't really matter, what you are trying to do is to develop a habit of saving. Once you get the habit it becomes quite addictive, this is why it is a good idea to train your kids at a very early age to save a little of everything they earn or are given for birthdays and Christmas.

Check out the online savings and investment calculator.