For some lucky individuals, saving is second nature. These are the people who started their first savings funds when they were five and bought a house in their early twenties.
These gleaming examples of saving prowess can make the non-savers among us feel pretty inferior. The reality is, though, that saving is far from easy, and most of us aren’t that good at. Money simply seems to disappear before savings are an option. Any cash we do set aside trickles away before it adds up. Far from being frustrating, this inability could end up costing you. Savings are essential for ensuring your financial future, after all.
The question is, how can you start and keep saving when you’ve never been able to before?
Have a clear goal
Saving with no real purpose never works. Without a drive, you’re liable to dip into any cash you set aside. By knowing what you’re saving for, though, you stand a better chance of setting money aside and keeping it. This goal will be the light at the end of your financial tunnel if you like. It needn’t even be anything major. You could focus on saving for something you’ve wanted for a long time, or even for a holiday. Or, you could go all out saving for a deposit on a house. It doesn’t matter as long as you have some goal to hold onto.
Work out where your savings will come from
Too many of us assume that we don’t have enough money to set aside in savings, and so never bother. But, by thinking about how much you could save each, you may see that you have more disposable income than you think. Even cutting out your monthly takeaway could see you with £20 for your savings pot. That’s £240 over a year. Make a few allowances like this, and you’ll soon save a fair amount without ever needing to break the bank.
Get into a habit
Getting into a habit is essential for ensuring that you keep on top with savings. And, your best chance at doing that is to seek a separate savings account. This ensures you get into the habit of transferring money on payday. That, in turn, can help you break the habit of spending money you’re supposed to save in your general account. When looking for a savings option, consider things like high-interest rates, and also online capabilities so that this habit is easy to keep.
Lastly, it’s vital that you check in with your savings sometimes. This can help you see your progress for yourself, as well as providing chances to reassess your goals. Checking your statements also gives you a chance to keep up with any interest you earn along the way. If it’s low, this is your opportunity to switch accounts. If it’s high, you might be able to fast track your savings sooner than you imagined. And, getting closer to the end is sure to keep your saving mentality strong.