Saving for the future...
Whether you’re saving for a rainy day or a week in the sun, the principle is the same. The sooner you start the better. Don’t worry if you're more of a natural spender – just think of saving, as money you’re going to spend later! And we’re not going to start by suggesting you cut out those early morning coffees on the way to work, turning the heating down to zero and Airbnbing out your bed while you sleep in the garden. Saving shouldn’t impact on your day-to-day life too much and can be so easy you hardly know you’re doing it. And it’s great to watch your money grow by saving little and often. Here are 3 simple tips that can help you kick-start a savings habit for life.
Baby steps. To get started, set yourself a small savings goal – if it’s reachable, you’re more likely to achieve it and the motivation to keep saving will keep growing. So put that yacht and helicopter on hold for the time being and focus on treating yourself to some new clothes at the end of the month or even a holiday a little further down the line. Figure out how much money you need to save and set yourself a deadline. Each week or month, set aside a certain amount of your income until you’ve got enough saved up.
This will give you some practice and boost your confidence. Keep adding goals to the list. You might start saving enough to buy a new pair of shoes, but keep the momentum up and one day you could find yourself having saved enough for a wedding or a house deposit.
Create a routine
Tip two is to start a saving routine. Divert some of your income into your savings once a week or once a month. Choose a specific day or date that suits you and stick to it. Before you know it, your savings will start to grow. If you don’t trust yourself to get round to moving your money regularly, you could set up a standing order from, your current account to a savings account around the same time you get paid. That way you won’t get used to having the money in your main account or be tempted to spend it.
Take advantage of a windfall
As well as any regular income, you might find yourself with some unexpected extra money at the end of the month. Believe it or not, it can happen. You might spend less on groceries one week - or could be too busy to grab that early morning coffee we mentioned earlier – or perhaps you decide to start walking to work instead of the bus. Rather than let these small savings accumulate in your current account – and then get frittered away without you noticing – get into the habit of moving them into your savings pot. If it sounds like too much hassle – let’s do a quick bit of maths . Take your £1.80 bus fare - that’s £3.60 a day. Invest that in a cash ISA and you could have around £3,700 after 4 years. Plenty of money for a luxury holiday somewhere warm and welcoming.
Oh, and putting your money somewhere where it’ll earn interest is very important too – it’ll help you reach your savings goals faster. Sainsbury’s Bank has a range of savings accounts for all kinds of savers.
This Money Matters post aims to be informative and engaging. Though it may include tips and information, it does not constitute advice and should not be used as a basis for any financial decisions. Sainsbury's Bank accepts no responsibility for the opinions and views of external contributors and the content of external websites included within this post. Some links may take you to another Sainsbury's Bank page. All information in this post was correct at date of publication.