Building wealth in 2023 and beyond – Starting with savings
To weather life’s ups and downs, including a recession or job loss, a healthy savings account is critical as this will provide support if you get laid off, your self-employment income takes a sudden dip, or a major expense pops up.
Saving money is also key to covering all your wants and needs, like paying medical bills, buying a home, or taking a holiday.
If you have debt, you may feel pressure, both internal and external, to focus on paying it off before you turn your attention to your savings. In fact, you may think this article doesn’t apply to you because you have debt and therefore no intention of prioritising your savings. However, when you don’t have savings and an unexpected expense comes up, the expense goes right on the credit card, and you’re back in the same debt cycle you were trying to get out of.
In order to avoid getting into debt, follow these three simple steps:
- Open a separate savings account
- Set up auto-transfers on a weekly or monthly basis
- Review and increase your savings rate as your income changes
Source: Insider Personal Finance.
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We can help take the effort out of this for you by demonstrating how this would work for you and your family and providing you with one cohesive Holistic Lifestyle Financial Plan.