When it comes to putting money away everyone is different, from the amount saved each year or month to the reasons behind saving at all. So, which type of saver are you?
These days, there are many different ways to save your money, from easy access accounts to long term saving options like how to invest in bonds. Whichever way you choose to save can say a lot about you as a saver.
The ‘cash under mattress’ saver
Though the thought is quite amusing, there are still those savers who avoid banks and accounts and prefer to keep their money in hand. From private safes and moneyboxes to stuffing the mattress with notes. Although not advisable, saving at home can still help you accumulate a nice amount of cash.
If you do save at home though, you won’t be able to take advantage of any interest. That’s ok if you are saving small amounts, but if you are looking to save large amounts, the added interest could benefit.
The ‘disciplined’ saver
Some savers take their savings very seriously and will deposit large sums regularly. It’s helpful if you have disposable cash from your monthly income and want to put it away for a rainy day.
You can save money in the daily grind of life by using coupons to save a few bucks here and there, and give you benefits like free shipping for things you normally purchase.
Disciplined savers usually stick a tried and tested savings approach, learned from a trusted contact or investing book.
However, even saving just small amounts regularly is useful and you will be surprised how quickly your savings grow. Of course, the secret for both of these savers is to try not to delve into your savings too much. Choose an account that isn’t quite so easy to access.
The ‘I’ll start tomorrow’ saver
Are you a dreamer when it comes to saving? Do you imagine that you will become the next lottery winner and your saving can start then?
For many out there, the idea of having savings really appeals but actually starting up a savings account seems to fall by the wayside. All talk and no savings action!
For dreamers, it may help to set up an account and pay into it by setting up a direct debit or standing order. This way, a regular amount of money and any will do, will go into the account and you won’t even notice.
The next two types of savers are very different. First, you have the best deal savers who will continuously search for the most competitive rates when it comes to their savings. Their ideal goal is to make as much interest on their savings as possible.
The ‘safe’ saver
In contrast to that, you might be a safe saver. This type of saver likes to stick with what they already know and will often open a savings account with their current bank or building society regardless of what is available elsewhere.
This is no bad thing, but if you are a regular saver or someone who doesn’t delve into their savings too often you could be gaining a larger amount of interest elsewhere, boosting your savings.
The short term and long term savers
Then there are both the long term and short-term savers. The first is usually someone who is saving for something important in the future and doesn’t necessarily need regular access to their account. Their investing time horizon is long.
Very often this can be savings for a child’s university education or for some extra funds in retirement. Either way, putting your savings into fixed-rate bonds could be a good way of letting your money grow.
Short-term savers, however, usually have a fairly imminent savings goal. This could be saving throughout the year for a Christmas fund or putting money away regularly to finance a round the world trip.
If you’re saving over a short period of time it will help to have a savings account that you can access easily and won’t be penalised for taking your money out.
The adventurous saver
Finally, there are those with a high appetite for risk who want to invest rather than save.
For those with a really high tolerance to risk, they might invest in less stable economies e.g. emerging markets, or in less liquid investments such as physical commodities or invest in property or even investing in land.