The three pillars of smart saving: How to start saving

Introduction

Let’s be real—saving money sounds like something we should do, but actually doing it? That’s a whole different story. With so many options out there, it’s easy to put it off. And who wants to dive into a sea of financial jargon after a long day?

Here’s the good news: saving doesn’t have to be complicated. If you focus on just three core pillars - Flexibility, Tax Efficiency and Risk Awareness – you should be able to narrow down what type of savings plan is for you. Let’s break it down:

Flexibility

Keep it customisable to your needs

Life moves at a pace. One month you could be saving for a trip, but in the next you’re hit with an unexpected bill. That’s why your savings plan needs to be flexible to your needs. You should be able to pause, boost, or scale back your contributions whenever life throws a curveball.

Also, think about how easy it is to access your money. Long-term savings are great, but knowing you can tap into your funds in an emergency? That’s what makes saving feel safe—and doable.

Tax efficiency

Don’t let the taxman take more than he should

Not all savings accounts are the same. One way to narrow the options down is evaluating the tax implications. Before you commit, ask yourself:

• How tax-efficient are your contributions when you invest?
• What taxes may apply during the investment period.
• Are there any fees or tax-implications when you withdraw?

Thinking ahead about your future tax situation could be a power move. By planning now, you could level up your savings game by understanding how to maximise any tax benefits and using this knowledge to help influence your savings strategy. Future you will thank you.

Risk Awareness

Know your limits

Just because your friend is throwing money into a certain investment doesn’t mean you should. Everyone has a different comfort level with risk, and that’s okay.

Take time to understand what you’re investing in, understanding the risk verses the reward, the potential losses and how this could affect your future. It’s not always about avoiding risk completely, but finding the right balance for you.

Sure, there are other things to think about - like fees, performance and customer service - but these three pillars can make it easier for you to start figuring out what might work best for your unique circumstances.

And if you’re feeling stuck? A financial adviser who understands your world can help you build a plan that actually works for your life.

Please remember: The value of investments can go down as well as up and you may get back less than you invest.

Tax treatment depends on your individual circumstances and may be subject to change in future.