Saving Savvy: Habits of The Financially Adept

Want to be a financially savvy individual in control of their money?

Of course, you do- being able to manage your budget and live in a fulfilling way on the money you have is one of the most important skills to learn in your adult life.


Whether you have a large budget or a small one, you should always be mindful of where your hard earned cash is going and putting it to the best use possible.

Money might not be the be all and end all in life, but being responsible and handling it well can make everything run a lot more smoothly.

Here are three things that most financially savvy people save for.


#1 An Unexpected Bill or Expense

There are few things worse than a broken down car, washing machine or a huge bill falling onto your doormat.

However, it’s even more stressful when you don’t have the funds to put it right. Life has a funny way of catching you off guard with these things.

Unfortunately, it does happen, and so you need to be prepared. Have a savings account that’s separate to everything else that’s just for these kinds of expenses.

If you’re really smart with money, you’ll put in enough for a few months bills/ mortgage payments too just in case.

It’s famously quoted that we’re all just three paychecks away from homelessness, although for many people it’s just one.

Give yourself a buffer, if you lose your job or can’t work due to sickness you at least know you’re not going to lose your home.

Without these kinds of funds on hand, people can resort to extortionate loans and credit cards to raise the money, or even dabble with loan sharks.

Financially savvy people will always have this money as a backup, it’s something everyone should aim to do.


#2 Their Children’s Future

Starting out in the world is hard.

Having a bit of cash for things like a car, a mortgage deposit or for education can make a huge difference in your child’s life when they get older, and can give them opportunities they might not have otherwise had.

While it’s important to learn the value of money and that hard work is essential in life, giving them a helping hand isn’t the same as handing them everything on a plate.

We all want what’s best for our children, starting a savings account when they’re small is a good way to do that.

When relatives ask what they want for special occasions, you could ask them to donate to this instead of giving them toys (most kids already have too many as it is!).

That way the money goes towards their future and gives them something really meaningful.


#3 Retirement

Planning for retirement is easy to put off, as it always seems like it’s so far off. A wise man once said ‘old age is always ten years older than I am.’

But it’s important to plan for the future, after working hard all of your life you want your retirement to be a truly wonderful and relaxing time.

People can be put off for speaking about retirement, but just because you’ve entered a new season of your life it doesn’t have to be morbid.

It’s a chance to take up hobbies, travel and do all of the things you’ve always put off. Providing you look after your body and mind well in your life you’ll remain as fit as a fiddle for many years to come. Sites like


Sites like could give you more information about financially planning for this stage of your life. Don’t put it off, invest in your future!


#4 Large Purchases

Credit can be a good thing, especially for things like mortgages.

The average person isn’t going to ever be able to save up and buy a home outright, so in this case, lending is a good thing. However, for other large purchases, financially savvy people would rather save than use credit.

Whether it’s for a holiday, home renovation, even a new vehicle. When you buy with cash you save yourself a whole lot of interest costs and stay in full control of your money.

It’s so easy to spiral out of control when it comes to debt- many people become over committed before they know it and end up with more outgoing costs than they can afford to cover.

This then leads to a ruined credit score and any further (essential) credit will come with a higher interest rate. Unless you absolutely have to use credit, save up and pay with cash.

If it’s a luxury purchase or something you don’t have the money for right now, saving is by far the best option.


#5 An Investment


As well as simply saving money, a financially savvy individual knows they can put their money to work.

It could be an investment property or peer to peer lending or savings bonds are all low-risk investments which offer modest returns.

If you don’t mind a little more risk, how about investing your money and creating a business? If you have some free time and a good idea, you could turn a little extra cash into a lot.

It’s all about careful planning and consideration, any risk at all should be a fully calculated risk. And investment money should be completely separate from all of your other savings, any losses shouldn’t affect your regular budget or anything else you are saving for.

Not everyone has the disposable income to spend on investments and that’s fine, but if you do find yourself with extra money be sure to pay any existing debts and pad out your savings before considering this.

Money can be tight unless you’re working a very well paid job chances are you don’t have masses of disposable income. But learn to work with what you have- where to make cutbacks and the sorts of things that are worth saving for.


Are you savvy with money, or is this something you’re working on improving? Share your thoughts below.


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