Top tips to start saving
Try these tips to start saving and build a future of financial security.
Choose a main savings account
Setting up a savings account is a great first step to being able to put money away. This should be a separate account where you can transfer money into each month but you will not take it out. Finding a savings account with a good interest rate is even better but just putting your own money somewhere you won’t spend from is the first step.
Make sure to find the right savings account for you, a fixed-term account, easy-access, notice-savings or ISA’s for first time buyers. Options for each form of account include;
Sainsburys bank are offering 4.5% interest on an instant access account, so you can withdraw your money whenever you need and have security in knowing it is there when you need it. This bank offering a 4.5% AER Gross p.a. means that in your first year with the bank having in between £1-£500,000 you could earn 4.5% interest rate on this.
NatWest offer a fixed term account, this is so you cannot withdraw money for the term agreed and restricts you from using your savings. This is helpful if you have a tendency to use the money you put in your savings. An account with NatWest is offering a 4.3% AER/Gross on balances between £1 - £5,000,000 for the term of one year. For this account you add in a lump sum and leave it in the account to grow for the term. For this it is best to put in a larger amount and works best if you already have savings which you want to keep restricted and allow to grow without touching it.
Investec offer a notice-savings account, where you can withdraw money but you have to give 90-days’ notice beforehand. This is helpful if you are saving for something specific so you know when you will need the money and don’t want to take it out prior. You can make unlimited deposits and withdrawals, when giving notice. When you have between £5,000 - £250,000 the interest rate is 5.25% and will be paid monthly into your account. A great way to control your spending and secure savings.
Take time to figure out which one will work for you or talk to your bank.
Make savings part of your monthly budget
Each month set a budget that you can stick to. Make a list of everything you have to buy and pay for and which you cannot compromise on, such as, rent, groceries, and childcare etc. After this, budget the month and include your savings account in this, after your obligatory spends and money goes into your savings, whatever you have left is your money for the month.
Have a goal and a deadline
What are you saving for? Make this clear and remind yourself of it each time you go to buy something. The top might be £30 but that is money you could use later down the line for something more important. To make it even more of a challenge, set a deadline for when you want to have X amount saved by. This will make you realise how much you need to put away each month and encourage you to carry on.
Try the 1p savings challenge
If you are just starting to save and don’t know where to start then try this easy challenge to get going. For day one you only put 1p in your savings account or jar, day 2 you will put 2p and so on. By the end of a year, you will have over £650 saved and you can always up the amount for a certain day to increase your savings. This is a great way to ease yourself into saving money.
Cut back on everything you don’t need and be brutal about the list. Saving can be difficult but if there is a goal you have then you may need to cut back on spending to achieve it. Go without any takeaways or meals out for a month, cut down on your subscriptions, save on energy bills by washing your clothes on a lower temperature, get energy-saving lightbulbs, make sure radiators are down in rooms you aren’t using. These are just some areas you could cut down in. If you struggle with impulse shopping learn tips on how to stop here.