Savings for a Safer Life – About the Art of Saving Money | Micro-loans

More or less all Swedes wish they had a sound private economy, which they did not need to worry about even. A very important factor for a good economy is self-savings. Saved money works like an extra buffer zone and these financials can be used for special needs. This type of buffer not only creates financial security, people with savings also generally feel safer in life



Some reasons why saving money is important are the following:

  • Creates long-term security and a buffer for future purposes.
  • You can trust that you have money tomorrow as well and build your confidence in your own personal finances.
  • You can ” borrow from yourself ” instead of having to take expensive micro-loans from sms lenders.
  • You force yourself to think financially, thereby giving you an overview of your finances and a better understanding of what things cost you.

Savings have several positive consequences, not only in the form of purely financial gains, but also involve psychological and psychosocial benefits. Making a little money each month can make a big difference in both the short and long term.

Getting started and saving


Many times the first step is the most difficult to take, this also applies to those who are thinking of setting up a savings account. The most common dilemma you face when you start to save money is that the financial resources do not seem to be sufficient. Many people wait until the end of the month and if there is any money left in the salary account, well then they are transferred to the savings account.

There are a couple of problems with this approach. First and foremost, the salary account will in many cases be empty at the end of the month, which means there is no money to save. Furthermore, the psychological factor in this procedure should not be underestimated. By placing the savings transaction at the end of the month, instead of the beginning of the month, you declare to yourself that saving is the lowest priority. With this view of savings, the likelihood is that you will actually succeed in building some kind of savings.

It is therefore important to consider saving as a priority. Make sure to save money when you receive your salary at the end of the month. Regularity and long-term visibility are very important, so save a smaller amount of money each month rather than a larger sum every now and then. Saving is a bit like taking care of dental hygiene. What I mean by that is that it is better to brush your teeth a little but regularly, than not to brush your teeth at all some days. In the same way, it is better to save a little than nothing at all. A good alternative is to create a standing transfer, between SEK 100 – 2000 each month, depending on how much you can manage to save.

Two months’ salary is a good buffer


It is important to also have a goal for general safety savings. It is usually said that two monthly salaries are a good benchmark for buffer saving. Consider this as a goal for your savings, but avoid rushing through savings.

If you choose to deposit too much of your salary into a savings account, you may find it difficult to get your daily life together. When you start saving you should therefore make sure to save a very small amount at a time, if you notice that you could save even more, you can increase the deposits gradually.

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