January 31, 2023

The Editor Speaks: Taking a break

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I shall be taking a small break over the next few weeks due to health reasons so this space will taken up by guest columnists who write a lot better than myself so you are in for a treat.
Today’s column is:Young boy smiling at the camera while putting money into his piggy bank

Your piggy bank

samuel-rosenbergBy Samuel Rosenberg From Caribbean360

NEW YORK, United States, Thursday January 8, 2015 – In a perfect world we would all save at least 10% of our take-home salary and invest it in a high interest savings account, but we don’t all live in a perfect world and unless you want to live with financial doubts, it is essential to save money so that you can pay sensibly for both small and large expenses, from your savings, so that you do not incur interest rates or penalties.

Being able to save is one of the most important pillars of long-term financial stability. For the younger person, this might mean cleaning cars or doing small jobs for friends and family to earn a few dollars which you can keep safe in a bank account until you have enough money invested so that you can buy the item that you require and without having to rely on your parents or guardians.

It is for all of these reasons that you should start saving as soon as you can, because the sooner you begin then the faster you will have some of money available to purchase those treats that you desire.

When you borrow money from a bank or any other financial institution, you are going to have to pay interest on the money, which essentially means that the item is going to cost you more money because you are paying over months or years rather than using cash from your savings.

For younger people, banks often offer a free gift and sometimes add a bonus amount when you open a new savings account. Where possible, it is a good idea to open accounts with a range of banks to take advantage of these free gifts and when you are old enough to manage the account yourself, you can make the decision about which bank offers the best deal that suits your need.

When you set up an automated transfer from your main bank account to your savings account either weekly or monthly, according to how you get paid, you will be able to forget about moving money to your savings account because it will be completed for you. This takes away the temptation to skip moving money to your savings account and spending more than you need in a very nice restaurant, when a take-home pizza would have been just as enjoyable and your savings account will have benefited from the difference.

Where you find it difficult to be able to save enough money regularly it is a good idea to analyse your spending habits to see what you can cut out so that you can save properly. When one of your regular practices is to pick up an expensive coffee and a brownie on the way to work each day, if you make a coffee at home and take it with you, the amount you have saved can be put aside and paid into your savings account once a week.

There are many advantages to saving regularly. You will have access to money when you need it and you will be getting interest from the money you have invested. You will be creating an emergency fund for any dire circumstances that suddenly arise and you will be saving not only for your future, but for that of your family and your children.

The writer is the founder and CEO of Axcel Finance Ltd., the leading regional microfinance institution. Share your thoughts and email your questions to [email protected]
IMAGE: Young boy smiling at the camera while putting money into his piggy bank
For more on this story go to: http://www.caribbean360.com/business/samuel-rosenberg-piggy-bank#ixzz3OHUT4GT9

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