You Can Choose To Save If You Really Want

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Everyone can make excuses about why they do not have enough to fund a comfortable retirement, but we all know the most likely reason is we have decided not to choose to save.

Lifestyle choices, illness and other events can all play a part, but most workers can afford to save a little a lot to build up a pension fund.

Lots of people dream of retiring early as a millionaire, but the chances of that unless they win a lottery are slim.

But discipline and following a plan can help many people save.

Entrepreneurs write business plans outlining their financial objectives and the steps they need to take to meet them.

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Write down your savings plan

Few savers write a financial plan to do the same.

For instance, a 30-year-old may want to save £1 million by the age of 55. In simple terms, that means saving £40,000 a year for 25 years.

Too many savers start too late. A 30-year-old on a decent salary taking advantage of compound interest could realistically save £1 million, but the task is harder for a 45-year-old.

Entrepreneurs also know that they can make bigger profits on the same sales by watching their costs.

Savers can do the same by keeping to a budget and not spending too much on luxuries or unnecessary purchases.

Get rich schemes make you poor

Get rich quick schemes are often a rapid way to become poorer.

Paying money you could save to someone to tell you how to save does not make a lot of sense, and if their scheme is so good, why are they having to work rather than living off whatever money-making guru scheme they are promoting?

Controlling debt is also a way to raise more for savings. Once you have some money saved, become your own bank rather than borrowing off a credit card or overdraft. Paying down debt and repaying yourself from the money saved slashes the interest and other charges you are paying.

Try saving for a holiday or a car rather than borrowing, and set a budget and go for a trip or model of car that you can afford rather than one with bells and whistles.

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