How to start saving
Sometimes the hardest part about saving is just taking that first step and getting started.
Having a plan can help with this!
Here’s a simple step-by-step guide you can follow:
- Review that spending
Start by looking at your past 3 bank statements to see how much is coming in and how much is going out. Once you know where your money is going it’s easier to see where you can improve and where you could cut back.
- Do some deal hunting
Price compare to see if you can get a better deal and reduce your costs.
You can do this with your mobile phone and broadband contracts as well as your energy and gas bills. The energy market has been quite volatile so it might be difficult to get better deals at the moment. But it might be worth doing when things settle down.
- Get down with your budget
Make sure your budget is realistic and that there’s room for things you enjoy.
Take into account your past spending and make sure to include a savings category with an initial savings amount that feels achievable to you. Aim to increase your savings with time.
- Make automation your BFF
Open a separate bank account for your savings.
Keep your savings separate from your spending and treat it like a bill! Set up a standing order on pay day with the savings amount in your budget.
- The magic of apps
Use apps to your advantage.
You can also use a digital bank account that allows you to track your spending from their app. Some apps have a “round up” feature, so that each purchase gets rounded up to the nearest pound and the difference is added to a savings pot.
- Track those wins!
Know what you’re saving for. When you have a purpose for that money, saving becomes easier. It’s a bit challenging to just ‘save money.’ But if you’re saving for a holiday or your first home, then that helps you to stay motivated towards your goal.