05:33 10 July 2013
British holidaymakers will not be able to do as much with their money for the coming summer holidays it seems, as the pound experienced a drop in its value last week.
Experts predict a further slide vis-à-vis the euro and the dollar, which translates to lesser foreign currency for the pound. This happened as the new governor of the Bank of England advised the markets that there will be no upward movement in the interest rates anytime soon.
In this fast-paced and highly volatile economic environment, everyone should be prepared to be able to keep their heads above water during an economic backlash.
One could sometimes wonder – how can I prepare? – when we feel we are victims of circumstances which are beyond your control, and solutions to the economic problems may also be beyond us.
This is where the importance of having some sort of savings can be appreciated, a stash which can tide you over until things get better or get back to normal. Savings can give individuals a sense of wellbeing and confidence to deal with unforeseen events, such as losing a job or expenses for medical emergencies.
Having a savings account will save one from borrowing against the retirement account or worse, charging the emergency expenses against the credit card.
Saving is a habit that should be developed early. But if you did not do it before, it is not too late to start now, depending of course, on your source of income. You can save for your retirement, for your dream home, a child’s college tuition or a dream holiday.
Professionals and analysts may sometimes make you think that saving your money can become a complex and risky undertaking. But the most important fact is to start saving early and save more.
Interest rates can go up and down and the stock market results cannot be predicted 100per cent accurately. The only things that you have complete power over is your will to start saving and how much you will save.
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