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How to save money
Forming winning habits to save money can be difficult for even the most pro-active people. In this article, I look at how you can save and invest with ease.
The covid19 pandemic has shown how close to the breadline many citizens in first-world countries often are. The average Brit is said to have around £7000 in savings — far from the six to twelve months of salary that we are recommended to have saved up for the proverbial rainy day. In the US, fewer than half of households save on a regular basis.
The reasons why people don’t want to save are myriad. Retirement is seen as being far off into the future, people lack financial knowledge and we don’t have the incentives to save because of low interest rates or fear taking a punt on ‘risky’ shares and losing our money.
Accumulating savings remains an important part of life and vital to your health and wellbeing. Having cash around helps us to meet long-term goals such as buying a new home.
Building the savings habit
How can we encourage people to save regularly? This is a question that has plagued governments for decades yet there are a few ideas that work well and if scaled up, they have the potential to help millions of people.