Ask Paul: What should I do with my savings?

Dear Paul,

I work part-time in the hospitality industry, where I am not guaranteed to get a set number of working hours or fortnightly pay coming into my bank account.

To try and save money while still paying my bills, what should I do with the small amount of money that I get? - Sam

I am glad you are thinking about saving, Sam. I don't think a lot of people realise how important it is to get into the habit of saving.

Also, small, regular amounts grow over time, giving you a range of investment options in the future.

With small amounts, my advice would be to transfer these to a separate high-interest account. I just checked out what I am earning on mine and I see it is 4.7%.

This is a nice rate of interest, but the most important thing here is to separate your savings account from your day-to-day account so you can see your savings grow.

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