How to start saving money
The core foundation of financial success is being able to save money! Whether you’re looking to improve your financial security, you’re looking to purchase a high-value item or you’re hoping to put some cash away for your children’s futures, saving money can have a huge positive impact on all your areas of your life.
Even just having savings in the bank for a rainy day can take away many worries. And, the good news is that there are lots of ways that you can start saving money. Here are some of our top tips to help you get started!
4 easy ways to save money on everyday spending
Pay off your debts
First and foremost, before you even think about starting your money-saving journey, you should start by clearing all existing debts. These include credit cards, store cards and overdrafts. This will instantly give you a clearer picture of where you stand when you start saving.
While you are getting used to saving money, it certainly helps to start saving small amounts. This is because it is important that what you are planning to save is manageable and doesn’t put pressure on your everyday finances.
Remember, saving small amounts can soon add up. For example, if you buy a £3 coffee every morning on your way to work, and think you can live with making one at home before you leave for the day instead, that might seem like just a little saving. But £3 every day for 5 days totals £15 a week, and believe it or not, this amounts to £780 over the course of a year!
Always keep your savings account separate
Transferring money into a savings account is one of the best ways to keep your money safe and sound. After all, if you keep it in a savings jar at home or somewhere else where you can easily access it, there is always the temptation there to dip into it. Not only that – money in a jar won’t grow like it could do in a savings account. That’s why it’s worth considering savings plans and investments as a simple way to grow the money you’ve made all that effort to save.
Set up a standing order
Setting up a standing order to go into your savings account at regular intervals is a great way to save money and see your funds grow quickly. It also means that you are less likely to spend the money if it automatically leaves your current account.
Look beyond basic interest rates
There are lots of different savings and investment plans available and the best one for you will depend on how much you want to save and how long for.
It’s also worth looking into any benefits you might get, beyond the basic savings or investment account. For example, with POIS, you get access to some great member benefits including:
- Discretionary grants to help with everyday dental/optical healthcare costs;
- Discretionary educational awards up to £300 per year for anyone aged 16 and over in further education, studying for a recognised qualification
- Convalescent grants to help you rest and get better following an illness
Membership is included free with all POIS products, and we also offer M&S gift cards with our savings accounts (subject to the amount invested).
Are you spending within your means?
Everyone should prepare for sudden expenses by putting money away regularly. However, it’s important that you do this within your means. To help determine whether or not you are spending within your means:
- Check your income vs your spending to make sure you aren’t overspending
- Track your spending or set a budget to help manage your money
- Always work with what you have rather than use credit cards
- Be aware of your debts and make sure you are reducing them where possible
- Set achievable goals
Visualising your end goal
Visualising your end saving goal will always help you to stay on track and of course starting saving early can make these goals even more achievable.
Find out more
If you’re considering setting up a savings account for yourself or a loved one, or you’d like more information about the options available to you, take a look at our range of savings and investment plans now. And don’t forget to take a look at our amazing member benefits too – it’s all just a click away!
You may get back less than you have paid in. The membership benefits we provide aren’t regulated by the Financial Conduct Authority or the Prudential Regulatory Authority, and are regularly reviewed by us to ensure they are relevant to our members.
The content of this article is for information purposes only and does not constitute financial advice. We do not offer financial advice. If you’re unsure as to the suitability of a product you should seek advice from a Financial Adviser. You may have to pay for this advice.