Beginner’s guide to saving money

Saving is a good habit, even if you don’t have a specific goal in mind. The most effective approach is to start saving on a daily basis.

A Saving can help you buy something you want or just allow you to have a bit more money than what you usually have.

You can save money from your salary, save for a trip you’ve been longing for, or save for retirement.

The need to save is something we get used to very early on. Whether it's conserving water during showers, setting aside our allowance, or switching off lights to save electricity. The question is, can we cultivate a daily habit of saving?

Saving doesn’t mean that you will stop spending money or doing the things you love. It’s just a way to be more aware about your spending habits, whether they’re small or big, and to reduce the cost and frequency of some expenses.

Saving money is a daily routine, and as such, you may need to modify some of your current habits.

Here are some tips to save daily:

It's important to teach younger generations about the value of saving. Encouraging small actions like turning off the tap while brushing their teeth can be a good way to start instilling this habit at home. Keep in mind that children often learn by example, so setting a good one is key.

Making use of all available tax deductions or traveling during the off-peak season using budget flights are examples of occasional money-saving habits that can significantly affect your finances. These practices may not be a part of your daily routine, but they can still make a considerable difference in your budget.

It's important to remember that saving money doesn't always mean choosing the cheaper option. While buying something inexpensive may seem like a good way to save money in the short term, it can end up being a false economy if the item doesn't last and needs to be replaced soon after. To truly save money, you need to consider the relationship between price and quality for each item you purchase. In some cases, investing more upfront may actually result in long-term savings.

Savings can be achieved with both short-term goals, such as buying a new pair of boots by the end of the month, as well as long-term goals, such as buying a new car or planning for retirement.

If you're working towards a medium to long-term financial goal, your bank can be a valuable partner by providing solutions such as savings accounts, certificates, and retirement savings plans (PPRs).

To make it simple there are even savings calculators available that can recommend the most suitable solution based on your financial goals and capacity.

It's crucial that you understand the timelines during which your funds may be inaccessible and that you're fully informed of the risks involved if you're considering more complex financial products.

Another important factor for successful savings is being realistic, which means knowing exactly how much you can save. For example: attempting to save half of your monthly income when 30% is allocated towards housing expenses may not be realistic. It's better to start with a smaller savings amount and gradually increase it as your budget allows.

Saving is a way of building a better future without jeopardizing the present.

If you want to start a savings plan with a predetermined objective, there are three questions you should ask yourself:

• What is the amount I want?
• How much do I need to save regularly to achieve that amount?
• How long will it take me to reach that goal?

By addressing these three questions, you will make a commitment to the desired level of savings and take the first step towards accomplishing your goal.

Savings goals can change throughout life but the principles will be the same, whether you are saving for a home purchase or your children's education.