My UK Finance » Savings http://www.myukfinance.com UK Finance Blog Fri, 13 Jan 2012 04:52:55 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 Saving and Budgeting in a Tough Economy http://www.myukfinance.com/saving-and-budgeting-in-a-tough-economy http://www.myukfinance.com/saving-and-budgeting-in-a-tough-economy#comments Thu, 17 Mar 2011 08:10:09 +0000 admin http://www.myukfinance.com/saving-and-budgeting-in-a-tough-economy In today’s volatile economic conditions, it can seem nearly impossible to find any extra money for a savings account. While this is certainly true for some, most people can find ways to cut back on their spending to increase their savings. Cutting out the morning stop for coffee or television programming packages, which include hundreds of unnecessary channels, are just a couple of examples on ways to save a few dollars. If there isn’t a way to reduce spending in your already tight budget, maybe a part-time job or extra shifts at work could help fund your savings account. Finding the additional income to save can be done, but what next?

If you compare savings accounts online or go to a brick and mortar location, all of the information can be overwhelming. There are several websites that can actually compare savings accounts for you. Be sure to research not only the interest rate, but also if there are additional fees on the savings account. Some financial institutions charge a fee if a minimum balance is not maintained, as well as other fees you may not be aware of unless you read all of the fine print. A savings account is an essential starting point to providing a better financial future for yourself and your loved ones.

The best savings account is one that has a high interest rate with as little maintenance fee as possible. An automatic savings plan, which automatically withdraws money from a primary account into a savings account, is a great wealth-building tool. Many financial advisors suggest 6 to 8 months of income be saved in an emergency savings account. An automatic savings plan will help, over time, build your savings account to prepare for life’s unexpected emergencies. A savings account, if made a priority, can provide a sound and secure financial future.

]]> http://www.myukfinance.com/saving-and-budgeting-in-a-tough-economy/feed 0 How To Increase The Value Of Your Savings Account http://www.myukfinance.com/how-to-increase-the-value-of-your-savings-account http://www.myukfinance.com/how-to-increase-the-value-of-your-savings-account#comments Wed, 22 Jul 2009 17:32:54 +0000 admin http://www.myukfinance.com/?p=30 savings2Everyone knows how important it is to have a savings account. Whether you’re saving money for retirement, an emergency or to purchase something that you want or need, a savings can be invaluable. But, there is one time when your savings account can actually be worth much more money that what your balance reads.

It can literally take you years, or decades to pay off high credit card balances, especially if you’re only able to make the minimum payment each month. And, because of the high interest associated with most credit cards, when you do make a payment, very little of it is deducted from your actual balance.

There is just no sense in paying all of that interest every month when you have enough in a savings account to pay off the balance in full. When you use your savings account to pay off a high interest debt, you could be literally doubling your money in the savings you’ll see on that interest.

With a credit card balance of just $2,000 at about 18 percent interest and a  minimum payment of $155, it will take you 5 years to pay off the balance. When you multiply your payment by 60 months, you’ll realize that you’ll be paying over $9,000 for the $2,000 you charges. It just doesn’t make good financial sense to have enough in savings to pay off a credit card and not do it!

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