New Year Resolutions: Start Saving

The New Year seems to be a good time to sit down and think about your finances. It always seems much clearer at the beginning of a fresh year, before life generally carries you away. Making sure you review your current situation, make changes where they are needed and taking time out to think to the future are very necessary things we have to do, but so many people try and avoid them, worried about what they will find out.

This article will look into what you can do to start saving or make the most of current savings, and offer a few tips on how you can stick to the saving regime.

It can be hard sticking to a regular saving scheme, but it depends how disciplined you are and how regular your income is as to the best option for you. There are a few different ways to save though.

• Put aside the same amount each month into a bank account, either manually or set up a standing order with your bank. Some of you will prefer to do it as soon as you've been paid whilst others will wait until the end of the month. Preferably do it whilst you still have money in your account.
• Put spare change and pound coins into a jar throughout the month and then pay it all into an account once it is full. Whilst this is quick and easy to set up, it can also be far too tempting to dip into the jar and spend the proceeds leaving you with nothing. You need to be strong-willed to make this savings scheme a success.
• Go for an account that does not offer a cash card or any easy way of accessing that money. That way you will be less likely to draw it out. It'll still be there for genuine emergencies, but will require a bit more work so you will be less likely to go through the hassle for something like that new coat that you really must have.

Set up a regular Standing Order

If you are thinking about starting to save in 2008, the best way is to set a high interest savings account and adding a regular amount to it each month. Set it up as a standing order, so you don't have to actively do it each month. This will stop you forgetting to save, and make it less tempting to skip a month and spend the money on something yo don't need. Be strict with yourself! After a few months, you won't even notice it leaving your account.

Regular Savings Account

There are many accounts out there to choose from. Visit your bank to see what they have on offer and go for a high interest one, but don't take the first account you see. Find out the interest rate, any minimum or maximum amounts and the withdrawal policy. Check out an online comparison site such as www.moneysupermarket.com to give you a good idea of what else is on offer. It is by far the easiest and quickest way to compare hundreds of saving accounts in minutes.

ISA's

An ISA is an Individual Savings Account and will let you add amounts of money as and when you have it to pay in. It allows you to save up to £7000 interest free for each tax year (so it starts April until March). Great because of the tax benefits.

Any financial adviser will recommend that the best savings account will be a long term one. Don't go for the short-term outlook but choose a plan that will see you saving, and not touching the money, for at least 5 years. That is the only way the interest will grow and make a real difference. But always go for the plan that suits your individual circumstances best.

You can always read more about savings on such websites as www.moneysavingexpert.com and www.fool.co.uk. Happy Saving!