Tips on what to avoid when saving money

The ultimate goal of saving should be the achievement of financial independence, which is why it’s vital to prioritise your financial goals.  There are a few things you need to avoid when saving money, however. 

Avoid these costly mistakes when saving money: 

Not having an emergency fund 

Establishing this kind of fund is the best way for you to protect yourself financially. It’s always advisable to save at least three to six months’ worth of expenses. In the event that you find yourself without a source of income or if you have an unexpected medical expense to pay, then you will be in a much better position if you have some savings at your discretion. 

Placing your money in a place where it’s difficult to access 

Don’t tie the money up in a long-term investment account if you plan to take it out before a specific date. This will result in having to pay high fees should you need to make any withdrawals. 

Not automating your savings 

If you have a set debit order every month, this will make it easier to save. Not opting for an automated option is something you want to avoid when saving money. 

Not using an app 

Technology helps, so embracing it ultimately makes your life easier, when used efficiently. By being open to using great apps in order to track your savings, you may be simplifying your life. Rather than having to rely on spreadsheets, you can sign up for an app and benefit from a range of further benefits it comes with. 

Ignoring high-interest debt 

Keep in mind that debt eats into your savings, so you need to prioritise paying it off. If you are spending most of your money on paying debt off, then chances are that saving will no longer be your first priority. Develop a strategy and as more money is freed up then you have more to save.