The key to saving is to make your money work for you. This is done through the power of compounding investment earnings, which can make even small investments become larger, given enough time.

Whether you may or may not be familiar with the principle of compounding, the money you put into a savings account earns interest on the original money invested. The interest is then added to your original investment.

The real power of compounding comes with time - the earlier you start saving, the more the money can work for you. Let's look at it another way. For every 10 years you delay before starting to save for retirement, you need to save three times as much each month to catch up. That is why, no matter how young you are, the sooner you begin saving, the better. (VOM chart provides more detail of how investment grows over a period of time)

How To Strengthen Your Fitness Plan

You need to handle credit cards wisely. Credit cards can serve many useful purposes, but often they are misused. For example:

You may develop the habit of paying only a small percentage on the balance
Making minimum payments could take up to 30 years to pay off the amount owed
If this is done with several credit cards, just imagine how fast the debts would increase

Some Tips for Handling Credit Cards Wisley

Keep only one or two credit cards, not three or four and avoid store cards as the interest rates are usually higher for these
Avoid expensive loans
Shop around for the best interest rates, annual fees, service fees, and grace periods
Pay off the card balance each month, or at least pay more than the minimum
Still having problems? Leave your credit and store cards at home

How To Climb Out of Debt

Take some time to set up a plan of action (this will take some courage to do, but it is more than worth it in the end)
Work with your creditors and reduce your debts
You can also work with your creditors directly to try and work out a payment arrangement

Saving For Regular Living Expenses

Once you have reduced unnecessary debt and createed a workable spending plan that frees up your money. You will then be ready to begin saving towards meeting your future regular living expenses. You may do this through various tax-efficient savings schemes.