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You and your money
Did you find Christmas 2007 a financial headache? Has it left you wishing you had put a little money aside each week to save up for all those presents and treats?
With a full year before the next festive bash, now is an ideal time to reassess your finances. Why not write down all your weekly spending and see what you could manage without in order to save instead? If you can make it a habit over time, regular saving – however small – soon adds up. Just £5 a week for the whole year means an extra £250 at Christmas. It may help you avoid borrowing from a doorstep lender and paying extortionate interest charges the following year.
Don't keep your savings in a jam jar or tin box under the bed. It's too easy to 'dip in' if you see a bargain! Instead open an account with a place you can trust.
To be certain that your savings will be safe, look for a business that's regulated by the Financial Services Authority, like a bank, building society or your local credit union. Such events are rare, but it's comforting to know that if the worst happens, you won't lose your money. The protection afforded by the Financial Services Compensation Scheme has recently been increased to 100% of the first £35,000 of savings – enough to reassure most of us.
Look around to see what sort of accounts are available. Many credit unions have introduced Christmas Saver accounts that are easy to pay into, including from your benefits. But you can't take the money out until 1 November!
When you draw it out, you may get a nice bonus, as your reward for saving.
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