Walking down your high street or even just browsing online can quickly turn into an unexpected spending spree. How do we start to combat this impulse?
The best way to do so is by setting a budget that includes a portion of your monthly income that goes towards savings.
At Wombat, we recommend that your saving follows these simple stages:
For your future goals that you want to save towards, you might want to set up a brokerage account. This money can be locked away in investments, as you won’t need immediate access to it.
It’s often really hard to keep in mind that you should be saving for your retirement, especially when it feels really far away.
It’s important to remember that now is the best time to start investing towards this, especially if you’re young. Having more time on your hands means that you’ll be able to ride up the highs and lows of the market for longer, plus you’ll make even better use of the power of compound interest.
"Anyone who is not investing now is missing a tremendous opportunity"
- Carlos Slim, Second Wealthiest Man in the World
You’ll be very grateful you made the decision once you reach your later years.
Remember that there’s always a risk of losing money when you invest in stocks and funds. History suggests that market gains outpace savings rates and bank accounts, but make sure you do your own research.
Whether your goals are short-term or long-term, automation can make it much easier for you to reach your savings targets.
With Wombat, you can automatically save and invest money every month. Start with a small amount that you can afford to put aside. Once you feel comfortable – start to gradually increase it.
Importantly, if you get a pay rise at work you should try and save some of the extra income. Automatically putting this money away will make sure that you stick to your budget and have more saved for your future.
Why not check out our stocks and handpicked themes to start making your way towards your goals with Wombat. Get started with as little as £10.