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MONEY · 35

In your interest Retirement may seem far off to some of us but saving for a rainy day or to have some extra income when we retire is vital, so why not tuck away some money for the future? Why is it important to save and when should we start? With so many expenses and activities to pay for during a lifetime, savings can be really hard especially at a young age when income is pretty low. Unfortunately, people around the world, especially at a young age, tend to think that saving money is a boring thing to do and end up saving only at a late stage in life just before retirement. In actual fact, according to a 2016 study done by Statista, 7 out of 10 Americans have less than $1,000 in their savings account. In the same year, data from Eurostat showed that the household saving rate was 10.8% in the EU-28 and 12.2% in the euro area of all citizens’ disposable income.

This article, which was compiled by Zenith Finance Ltd, does not intend to give investment advice and the contents therein should not be construed as such. Zenith Finance Ltd is licensed to conduct investment services by the MFSA. For further information contact Zenith Finance Ltd on 2133 2200 or send an e-mail to

At what age should I start saving money and how much should I save?

look for alternatives when it comes to longterm saving.

The practical answer is any age. Irrespective of whether you have just started your first part-time job today, or you have been working full-time for a couple of years, saving should start as soon as possible. It's good practice to start putting away at least 10% of your income. To successfully save money, your best bet is to create a budget or track your spending.

As an alternative, one can opt for Investment Saving Products which provide an element of safety and at the same time increase your investments over time due to attractive returns.

What money savings products should I turn to? Well, a traditional savings account is a way to start of course. The problem with these accounts is that the percentage return you get is low and would surely not be enough to cover inflation.

Basically, you would still be able to save a small amount (e.g. €100), like in the case of a savings account, every month (or any period you choose), but this money will be invested in a diversified portfolio in order to achieve a good return. The investment chosen would of course be in line with your financial objectives and risk appetite.

Don’t forget that if your savings rate is 0.2% per annum, and the current inflation rate in the EU stands at 2%, you are actually losing 1.8% on your purchasing power per annum! Therefore, although it is important to have one for your daily liquidity needs, it is best to

Concluding, although pension age might seem miles away, it’s always good to think about all eventualities. Remember, even putting a small amount aside every month can make a difference over the course of a long period of time.

These products would enable you to reach your goals and at the same time provide the required flexibility.