One of the benefits of saving money is that it can help you weather an unfortunate storm. Injury, illness, disaster or losing a job are all situations that could put a major strain on your finances.
These are moments when it is crucial to have an emergency fund so you can access your money quickly and easily. The good news is, building a safety net is easier than you think. Here's how.
Know your budget
Before you start saving, you need to know how much money you spend. Carefully track your expenses, either with an app, or with good old-fashioned pen and paper to get an idea of how much you spend on food, utilities, transportation, clothes and entertainment.
That will tell you how much you can comfortably save each month. Discipline yourself to set aside a percentage of your income each month, as it is as simple as setting up a recurring instruction to move money to your savings using HSBC Online Banking. You'll see your money grow with each small deposit.
Longer terms, higher interest
If you can commit to not touching your money for at least a month, then you can earn better interest rate with an HSBC Time Deposit, from 1.60% - 2.95% p.a. The longer you can set the money aside, the higher the interest rate will go.
The good thing about time deposits is that it helps you to be more disciplined in keeping your fund untouched to earn a higher return and you can manage it all instantly using HSBC Online Banking.
All it takes is 3 simple steps to set up. Let us show you how.
Don't stop saving
Saving is a great habit to get into and to sustain. Even after you've built your wealth enough to focus more on investing, try to save a little bit all the time so you always have an emergency fund.
This will help you avoid having to sell your investments if you need emergency cash, because you could end up losing money if that happens.
Setting Savings Goals
What are you saving for? Starting a family? Getting married? A trip? Pursuing a degree? Buying a house? Retirement?
Having a goal and knowing when you want to achieve it will help you figure out how much you’ll need to set aside each month.
A goal also helps keep you motivated to save. Start with setting a small and tangible short-term goal. By reaching smaller goals, it gives you a sense of achievement and helps to reinforce your savings habits over time. Every small step contributes towards fulfilling your longer-term goals!
Ready to start doing some serious saving?
Take a look at our different savings accounts and see which one is right for you.