How we can help you save
for life's ups and down

Saving is the best way to plan ahead for when expenses exceed your income.

Spikes in your expenses could be caused by:

• A deposit for a house
• Marriage
• Children
• Setting up a business
• Medical care
• Paying for education of your children

Troughs in income can be caused by:

• Redundancy
• A change in career
• Sickness
• Time off to travel
• Retirement

Set aside an affordable amount of your net income each month to build up a capital fund that can be used to bridge the gap between expenses and income without the need to borrow money.

Saving is common sense but a dying habit. UK savings per head are at an all time low, whilst borrowing per head is at an all time high. Borrowing money is expensive adding substantially to your monthly costs and has to be paid back at some point, most importantly sometimes when you need cash you can’t borrow money.

Having capital behind you means you have to buy less expensive insurance for say redundancy or sickness and gives you financial security. This means access to funds when you need them and without an application form!!

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What’s the best way to save?
Efficient saving is about getting the best return on your money whilst you build up your capital and then paying as little tax as possible on the investment returns made. As general guidance, the longer your savings programme the more sensible it is to invest in stocks and shares, which may potentially give better returns and protect your capital from inflation.

• To fund expenses that will likely crop up in less than 3 years, a cash deposit account is the best solution and a tax-free Cash ISA is ideal. Go to your bank or shop online for the best deal.

• For expenses likely to be more than 3 years in the future a tax-free Stocks and Shares ISA with a leading fund manager is likely to give better return.

• Think about spreading your savings over more than one fund to reduce your risk and create a portfolio.

• If you want to save specifically for your retirement, consider a stakeholder pension scheme to get tax relief on your monthly savings, but remember this ties your capital up until you reach your retirement age and dictates how they can be dispersed.

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Which fund should I choose?
When you start saving regularly it may be beneficial to invest in more volatile funds, than when investing a lump sum.  If the fund price falls after you start your plan you will simply buy more units with your regular saving amount, what you want is a fund whose unit price will rise significantly over the term of your savings. For this reason it makes sense to consider using an equity ‘Growth’ or ‘Specialist’ fund.

CLICK HERE TO SEE THE TOP RATED MONEYSPIDER FUNDS THAT OFFER AN ISA SAVINGS PLAN

IMPORTANT WARNINGS
If you are not sure what savings plan would suit you or which fund to invest in you should seek the advice of an independent financial adviser.

Always remember when you invest in stocks and shares your investments and the income they produce can go down as well as up and you might not get back as much as you invest.