I’ve recently read loads of personal finance stories that deal with how to save money, but I haven’t seen many that state what you can actually do when you’ve reached your savings goal.
Everyone’s savings goals are different, some people save for a particular product that they like the look of, whereas others save for no particular reason other than having a rainy day fund just in case you need it. If you fit into either of these categories then there may be a time when you actually want to use the money that you have struggled to save.
I’m sure you all know that saving can be extremely difficult and it’s important that when you do decide to use some of your hard-earned cash, you get the most reward for your money.
If you have saved for a particular product that you have your eye on, then make sure you pay the cheapest price possible by doing a product comparison. No matter what product you want to buy, there are so many online retailers that the competition to offer the cheapest price is at an all-time high, so use this to your advantage.
Saving takes so much discipline that it would be such a waste to go and spend your money on something you don’t really need. Ask yourself the question, do you really need what you’re thinking about buying? Can you do without it?
If you haven’t saved for a specific product, think very carefully before parting with the cash. Strictly speaking, you should always have some savings in an interest-bearing bank account, this is often referred to as an “emergency fund” in the personal finance world.
If you have been saving for a big purchase, i.e. a holiday or a new car, and you’ve reached your savings goal, try not to get over-excited because you pay over the odds. Now that you have the money, you can use it to your advantage.
You could consider making your big purchase on a rewards credit card and you could end up either saving money or getting some of your money back in other forms of rewards. Then simply use your savings to pay off your card so that you don’t pay any interest.
If you’re not planning on using savings, that is a totally different matter, but make your money work for you. Do your research and find out what the best type of savings account is for you. What is the best interest rate you can get? Once you know this, you can invest your savings and watch the interest grow.