Saving money in these economically challenging times is easier said than done. But World Savings Day is a great reminder that regular saving, whatever the amount, helps build financial discipline, improving your ability to cope with the unexpected circumstances and events life throws at you.
After an extended period of low interest rates, current savings rates are some of the best we’ve seen in years, but with experts suggesting that base rate is nearing its peak and may even fall in the coming months, there’s an even bigger incentive to get organised and maximise every penny you can put away.
However, we know it can sometimes be difficult to know where to begin so read on for some top tips, tricks and tactics to help you get started…
- Save first, spend later
Start paying yourself first, so you can start to view your savings like a non-negotiable monthly expense. Move your savings out of your current account and into a designated saver paying higher interest at the start of the month and make a habit of doing so. If you’re struggling, try the 50/30/20 approach to budgeting. This means allocating 50% of your monthly income on your vital needs (bills, food, etc.), 30% on wants (eating out, leisure, sport, etc.) and 20% on savings (whether that’s for short or long-term goals or for an emergency fund). This split may not work if money is tight, so simply adjust the ratios as needed.
- Spend mindfully
If you’re always tapping your card when out and about it can be difficult to get spending to register in your brain, letting cash easily slip through your fingers as a result. While you shouldn’t feel like you can’t spend money and enjoy yourself, it can help to be mindful of the things you buy.
There are various ways you can make this switch in your brain, such as:
- Money-management apps – these can help you budget digitally through connecting your bank account to the app, and will analyse your spending to help you set realistic and achievable savings goals.
- Set up a day-to-day spending account – create it at your existing bank and get a dedicated spending card, then put a direct debit in place to transfer your weekly disposable income to it so you know how much you have for the week.
- You can switch
It is common these days to look for better deals for your broadband and mobile contracts, streaming services and insurance simply by using price comparison websites. Switching savings providers is no different, and you can easily look for the best providers out there online to ensure your money is working as hard as it can for you.
Research by Atom bank for our “Get paid, not played” campaign found that half of UK adults had never switched savings provider, despite the fact that they could be earning hundreds of pounds more a year if they were to move.
In fact, Atom found that those who have switched providers have, on average, more than triple the amount in savings than those who haven’t switched before (£17,501 vs £4,001).
- Set clear, achievable goals
One of the main reasons people don’t reach their savings goals is because they make them unrealistic. When setting yourself a goal, whether it’s to save for something in the short term or long term, you need to make it measurable and timebound. By breaking your goal down into smaller chunks with a set amount each month of how much you’d like to put away, you’ll find it easier to manage and this will help to ensure you reach your end goal.
World Savings Day acts as an important reminder to take stock of your own savings and look at how you can maximise them. Being able to put away even a small amount each month will ultimately add up and you’ll build healthy savings habits in the process. When it comes to savings at Atom, we offer customers a range of options to suit their savings goals, such as our Instant Saver account, which provides 24/7 access to cash when needed, and a choice of Fixed Savers accounts with different rates depending on how long you are able to lock your money away.
There’s many different types of savings accounts available in the market, and some are easier to access and manage than others, so picking one that suits you is important. Whatever you choose, it’s never been a better time to start taking your savings journey seriously, so take the time to get organised and see how you can get the most out of your hard earned cash.
Aileen Robertson, Head of Savings at Atom Bank
