If you have been putting off getting started with saving because you have too many outgoings, the secret to getting started is to start small. With energy bills and the cost of living set to increase, it might seem like a difficult time to start saving but the sooner you start, the sooner you will see the benefits.
Building up your savings is a long-term commitment, and it involves changing your spending habits and being stricter about your approach to money. Some relatively small spending changes can have a big impact over a long period of time and even if you are only saving a small amount, getting started is the first step to building the foundations of a better financial future.
Here are some tips for getting started with saving:
Open a savings account
It seems like an obvious step but by physically opening a savings account, you will start thinking more about how you can add money into your savings account. Without an open savings account, you will continue to put off starting your savings.
When you are looking for the right savings account to open, make sure you choose one that makes it easy to pay savings into your account. Even though interest rates are not as good as they once were, seeing your savings build up, however slowly, will give you an added incentive to keep going and to be more careful with your spending.
Many people find that if they automate a savings amount each month, they are more likely to keep putting money in, rather than manually transferring it.
Use a budget planner
To help reduce your outgoings and leave a small amount of money to put into savings each month, using a budget planner will enable you to manage your money more effectively. You can download online templates or even use apps such as Emma or that make it easy to monitor your money more closely.
Review your finances
Doing a full review of your financial position will help you to identify ways you could save money. Do you have any direct debits set up for services or products that you don’t really use? For example, paying for apps or gym memberships that you are not getting value out of? Making some tough decisions to reduce your outgoings each month could free up a bit of spare money to put into savings.
If you have a credit card or loan that you are paying a high amount of interest on, you should try to pay this off as soon as possible to avoid paying more interest charges. You might be able to find an alternative product with a lower interest rate to transfer outstanding balances to. The option to consolidate multiple debts by taking out one lower interest rate loan, will also make managing your monthly payments easier.
The Central Liverpool Credit Union is a great place to open a savings account, with easy depositing methods.
You can also benefit from an annual dividend (1.5% last year) with our Regular Saver Account, or you can choose our Prize Saver Account where you will go into monthly prize draws with a chance to win up to £5,000.