Make it a habit

Making smart choices with your money is the first step toward becoming financially fit.

The easiest way to save is to pay yourself first. That means setting aside a certain amount of money you earn and keeping it in a savings account. The key to saving successfully is by making it a regular habit. By saving early and often, you’ll set yourself up for a brighter financial future.

It’s important to save money for a rainy day, just in case you need it for any unexpected expenses like a broken laptop. Another portion of the money you receive should be set aside for your various goals. These goals can be categorized as short-term, medium-term or long-term. You can reach your goals by saving your money over time.

Sharpen your saving skills

It's tempting to spend all of your money as soon as you earn it, but you’ll be better off in the long run if you save a portion of it.

Think about a short-, medium- and long-term savings goal and determine how much you can save each month toward each goal. Remember, the amount that you contribute per month toward your goals can’t be more than you earn that month. Then calculate the cost of your goal divided by your weekly contribution to find out how long it will take you to reach each goal.

Watch your money grow!

Compound interest in action

Let’s say you deposit $50 into your savings account each month at a 1% interest rate. Each year, the interest you earn will help your savings grow. See how 1% interest will increase your savings over the course of three years when it is compounded monthly:

Compound interest can have a dramatic effect on the growth of your money over time. Determine how your savings will grow with this interest calculator.