Pay off debts before saving, says expert

The key to saving successfully is to fully understand a financial situation, says Thomas Charles & Co.

Director of the firm James Falla claimed that people need to calculate exactly what is coming in and out of their account over the course of a month in order to work out how much they can afford to put away.

In addition, for many people, paying off credit cards or other outstanding debts should be more of a priority than saving, he said.

“Look at what you can afford to save, and then look at any balances or debts that you have and see if you can pay any of those off quicker with that money that you would have been saving,” advised Mr Falla.

Once outstanding debts have been cleared, it is best to put money in a savings account at the beginning of the month when people have been paid, he added.

Nearly half (48 per cent) of people aged between 16 and 25-years-old said debt is one of their biggest fears for the future, according to CSV.

© Adfero Ltd

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