Do you ever say, ‘I want to save but can’t’? You’re not alone. In the UK, one in five people have less than £100 in savings to fall back on. Savings aren’t just nice to have for emergencies, savings help you have the experiences and things you want in life. Saving is also part of managing your money better and when you start to grow your savings it builds your confidence and you begin to view your money and finances differently.
The simplest things in life usually work best, so let’s get back to basics.
The Savings Myth
Most people who struggle to save will often say they can’t save until they have enough money. Although it makes sense to think this way, this is the biggest myth when it comes to savings. When you begin to save regularly, you find that you begin to save more…try it.
Pay Yourself First
If you go back to to the beginning (thinking Babylon times here) and bartering exchanges began and over time money exchanged hands, there was a way of building money and that was to pay yourself first. Now, this does not mean not paying important bills like rent, mortgage, gas, electric, phone or groceries and so on. It means thinking about saving as paying yourself and doing this first. So when you get paid every week or month, you give yourself an amount of money that you put into savings. Another positive of this is when you look at it this way it makes saving much more attractive! But importantly it actually works. If you feel like you are struggling then look at what other non essential things you pay for. Could you do without any of those to pay yourself first?
How to Start Saving
Come up with an amount to start with. Doesn’t matter how big or small that amount is, just set the amount and be committed to sticking with it for at least 3 months. Then, set up a standing order to send that money somewhere else. If you like the old fashioned way of saving and putting it in a jar then do that, but you are more likely to dip into it if it is accessible. Transferring the money somewhere else you don’t access regularly is a good way of building your savings. Set up a standing order from your bank to your Clockwise account. It’s easy and when you have a regular amount set up you can sit back and forget about it.
How to Grow your Savings
When you start to see the money you put by each week or month build up, it makes you want to save a bit more. It is surprising how you can save money elsewhere and put it to your savings. Even if you aren’t saving for anything in particular, having a pot of savings tucked by will give you peace of mind that if you do have an emergency or want to take yourself on a new adventure or get the latest gadget, you can. Over time you can start saving for different things or just a rainy day, that’s up to you, but the most important part is just to start….today.
Let us know how you get on, we’d love to hear from you.