There are so many TV shows out there that offer contestants the chance to win big prizes. Have you ever watched the show Who Wants to Be a Millionaire. In less than an hour, a television contestant answering trivia gets the chance to win one million dollars. Other shows giveaways televisions and grandiose vacations. It gets you thinking, what can I do to rack up big savings?
The good news is that you do not need to be on television to make your goals a reality. Don’t believe us? Watch a video we developed to help investors just like you.
Follow these 6 simple steps and you can make your financial goals a reality:
1. Start saving early
It’s common sense that the earlier you start saving, the more time you have to put money aside. Don’t wait until retirement is approaching to begin saving, start now! A few dollars a week will add up over the months and years. If you can, set aside money from each paycheck for savings.
For a better sense of how long it will take to reach your goal, try our online tools.
2. Spend responsibly
Making more money is not the only way to become richer. Another way to accumulate more cash is to spend less! To understand your spending habits, consider creating a budget and tracking your monthly expenses. This way, you’ll have a better sense of where you are spending your money and thus identify where there is room to cut back.
Some expenses like rent and healthcare may be fixed, but others, like food and social activities, are more flexible. Forgoing items that depreciate in value, like fancy cars or designer purses, can free up cash to spend on those items you truly need and even allow you to make added contributions to your savings. Another way to save money is to cook at home instead of eating at the restaurant. Hosting a game night versus a night at the bar is also a good way to save on unneeded expenses. We all know that Bermuda can be an expensive place to live, but there also are many free activities, including the beaches, railway trail and parks, that provide fun and cost effective entertainment options. Taking advantage of these is good for your wallet and gives you the opportunity to save instead of spend!
To learn more, read our article on .
3. Pay down debt
Whether it’s your mortgage, school loans or growing credit card bills, debt needs to be taken seriously. If you can, pay it off to avoid accumulating interest. Be sure to pay off the higher interest loans first and stick to a plan to pay at least the minimum requirement every month to avoid incurring additional fees. For tips, read our article on common credit card mistakes.
4. Be smart about investing
Investing is a great way to help your savings grow. For every dollar that you invest, you have the potential to earn an additional return. In other words, if you manage to save $100 in a stock that has a 7% annual return, by the end of the year, you will have earned an additional $7 without having to do any work!
Yes, you’re probably wondering what sorts of investments you should make? Don’t let the many options scare you away. Argus has informative, personalised solutions for individuals looking to build their wealth at all stages of life. To find out more visit our online tools or call 295-9000 for expert advice on what investment strategy may be best for you. You may also find our Frequently Asked Questions useful.
5. Automate saving
Putting a little aside every month doesn’t need to be an added item on your to-do list. In fact, it's possible to set up an automatic payment to pull a certain amount from your bank account each month and set it aside in savings. Choose an amount that works with your budget and if you can add more one month, do it!
6. Invest in yourself
Perhaps the most rewarding financial advice of all is to invest in yourself. Whether its education and getting a degree, reading to learn more about your field or taking steps to master soft skills (public speaking, presentation giving, etc.), by investing in yourself, you take an important step toward improving your confidence, job prospects and earning potential.
If you don’t already have one, take the time to find a mentor who can guide you on your journey. Mentors can help to answer questions that come up in your professional life and provide feedback and perspective that is valuable to maintaining a fresh outlook on your career and financial goals.
Stick to these simple tips and you will be on your way to saving for your future. Now, just think, what will you do with your savings?