Ever faced a financial emergency like the boiler breaking down but not had the funds at hand to get it started? Or have you wanted to save for something big but struggled to get going?
Help is at hand. Here are eight ways on how to start saving and get into the savings habit:
1. Pay off your debts first
You are unlikely to earn more interest on your savings than you pay on your borrowings, so aim to pay off expensive debts like credit cards, store cards and overdrafts before you start to save.
2. Start small
Even tiny amounts add up if you can save regularly. For example, saving just £3 a day adds up to £1,095 over a year.
3. Separate your savings
If you leave the money in your purse or bank account, it is much more likely to get spent. It helps to keep your savings separate. Find out how to save money using the jam jar approach.
4. Earn interest on your money
Open an account with your bank or building society and earn interest on your savings.
If you are setting up an emergency fund, look for accounts where you can get access to your money when needed, rather than tying it up for a long time. If you have a savings goal with a longer deadline you could go for a top-paying fixed-rate account.
Don’t ignore current accounts. Some are paying higher rates of interest right now, provided you follow all the terms and conditions.
If you do use a current account for your savings, consider running a second current account for your bills and expenses so the money doesn’t get mixed up.
5. Build a savings cushion
As a rule of thumb, it’s helpful to set aside an emergency fund with enough money to cover your essential outgoings for three months. So if you spend £1,000 a month on bills like your rent or mortgage, council tax, utility bills, food and so on, you will need to save up £3,000.
6. Set up a standing order
A standing order is an instruction to your bank to pay money from one account to another at regular intervals. If you set up a standing order to pay money into your savings account each month, your fund will soon start to grow.
7. Pay in after pay day
If you set aside savings straight after you are paid, you are less likely to miss the money. Wait until the end of the month and the cash is much more likely to disappear in every day expenses.
8. Set a savings goal
Write down what you are saving for and how much you need to save each month to reach your target. Then set a date when you aim to have saved enough.
thank u, for they were the ones i needed.your really helpful.it doesnt matter how young u are,for greatness and sucess starts with a small step
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So just for guys who want to track savings, nation wide allows you to have a goal on your savings account to visually track your savings, its actually really helpful it kind of turns it into a game depending on how you look at it
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This is great, it makes me more determined knowing that this time next year I will have the money to go on the holiday I've always wanted to for my birthday by just breakin it down, only saving a little each week which I won't miss instead of a lump sum at the end.
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I don't have any debts I am 62 and unemployed unable to get work so i have to live on meagre benefits
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Common sense to save always a rainy day never know when you need it
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If u are not having a reasonable job, how much do u think a person of such level can save 4rm his little paid.
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That's real talk and nice advice, I really like the idle
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how can you do these things when you are on a pension
your in cukkoo land
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(
( 1 ) SAVE AS MUCH AS YOU CAN SO WHEN YOU DIE THE DEATH TAX CAN TAKE IT .
( 2 ) SPEND AS MUCH AS YOU CAN AND GO ON BENIFITS
! )SAVE AS MUCH AS YOU CAN AND WHEN YOU DIE THE DEATH TAX WILL TAKE IT
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Another idea. If, for example, you have a car loan of £200 a month and it comes to an end don't stop paying, but pay it to yourself in a savings account. After all, you've managed to pay the finance company for the last 3 years
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