Did you know, around 6.5 million adults in the United Kingdom had no cash savings in 2017? This new statistic comes from a 2020 report produced by Statista*. There are many reasons why you may want to save money, from building an emergency fund to affording the good things in life, such as buying a new car, going on holiday, or home improvements. Getting into regular savings habits is important, and building your savings could help provide financial security in the future. That’s why we’ve prepared some top tips to help you save.
Set some saving goals
Break-down your long-term goals into small, manageable milestones for the rest of the year. With a plan in place, you can work out how much you need to be saving each day, week, and month to reach your target. Having something to look forward to is a great way to motivate you to save money, so picture your end result, whether it’s a sum of money or something you’re looking to buy, and work towards it.
Create a budget
Budgeting allows you to create a plan for how your money is spent. The popular 50/20/30 budget rules suggest that you should spend 50% on essentials like food and household bills, including your mortgage or rent, 20% on savings, and the final 30% on things you want. This budgeting method provides balance throughout the year to help make sure you always have enough money for the things you need.
Think about your purchases
The well-known 30 day rule can have a surprising impact on your decision to buy something big. Before you hit the purchase button, write down what it is, and how much it costs, after 30 days if you still feel it’s necessary, purchase it. If not, consider saving the money instead.
Reduce spending where possible
Do you have a TV subscription that you never use? Food in the house that never gets eaten? Taking all opportunities to reduce spending can help you save. Sit down and think about everything you pay for, and how it can be reduced. Whether it’s switching to public transport or transferring to a cheaper phone plan, little changes can have a big influence on your savings.
Review your savings goals
Make sure you’re on track to meet your savings goals by reviewing them every so often. This could be weekly, monthly or annually depending on what you’re saving for. Are you saving enough? Will you reach your goal in time? Is your money working hard enough for you? Review the accounts you have and make sure they’re right for your goals.
Our friendly branch teams are always on hand to discuss your options and help find the account that’s right for you. We have branches in Barrowford, Burnley, Clitheroe, Colne, Lytham, Garstang, Poulton, and Nelson. If you’d like to contact your local branch about making a telephone appointment to open a savings account, you can find their details on our Find a branch page. Alternatively, you can view our full range of savings accounts on our Savings page.
*Statista: ‘Mean amount of cash savings in the United Kingdom (UK) in 2017, by age group’ study, published July 06 July 2020.