Saving money is something that every UK citizen will think about every day. It ensures our present and future financial situations are protected should something like the cost of living crisis hit the world again.
According to data collected in 2022, the average Brit has roughly £7,500 saved which is a very nice amount to have as a backup for emergencies or even for saving for future investment. If you’re well below this average or you’re looking to increase the amount you have stored, then you’ll need to begin implementing healthy saving habits into your life.
Not sure how to do that? This is the guide for you. We’ll discuss the best saving habits that you can bring into your life and the many benefits of doing just that. Read on to find out more.
Pay off debt
Debt can feel like a dark cloud following you around and can create extra stress around already sensitive subjects. Instead of paying what you’re supposed to pay, try to pay more than the minimum amount each month on your debts to help reduce the interest you pay.
This is also a great way to boost your credit score which could help you secure loans or mortgages in the future.
Creating financial goals that don’t necessarily focus on being able to make a purchase at the end can help you build bigger saving pots. For example, you might want a certain amount as an emergency fund. Once you hit that target, you can then consider putting more into it to cover more than just basics for an emergency.
Don’t live beyond your means
While it can be tempting to splash out or spend the very last penny of your paycheque, it can make it harder to begin saving and feel comfortable as you’re essentially forcing yourself to live ‘paycheque-to-paycheque’.
A great way to budget your wages is to use the 50/30/20 rule. This means 50% of your wages will be used for necessities like rent or bills, 30% for wants and 20% is put into savings.
If you have money in your bank it can be tempting to spend it. That’s why you should set up an automatic payment to send a set amount of money into a savings pot every month. This takes all the work out of saving and can help stop you from spending excess cash.
Saving can be difficult, but when you implement the right habits, you’ll see your pots of money rise dramatically. This will ensure your future finances are in great shape, so you can buy the house you want and provide for your family too.