Looking to give your savings account a boost? We understand just how difficult setting money aside for a big purchase like a house, car or child’s future can be and that’s why one in five Brits struggle to save a single pound every month.
While the cost of living crisis is without a doubt putting a strain on most people’s financial situation, saving struggles are sometimes caused by a lack of education on the subject. That’s why we’ve prepared a guide on the many ways you can build up your savings and hit your goals, so the item you’re saving towards will be that little bit easier to reach.
So, if you want to learn about the best ways to build up your savings, continue reading to discover methods that you can try no matter your monthly income.
Create a plan
The first step in your saving journey is to create a plan. This is all about setting your saving goal and when you’d like to have the money. Try to be realistic with this plan because if you don’t, you may never achieve it or your quality of life during the saving process may be negatively impacted, which could affect your mental health.
Track your spending
It’s a good idea to see where your money is going every month, so we recommend keeping a log of your expenditure for the first month of your savings plan. This will let you assess where your money is going and where you can save too.
Keep an eye out for subscription services or memberships you aren’t using and cancel them to recoup some extra money for your savings each month.
Open a separate savings account
We also recommend opening a separate account for the money you’re saving as you’re far less likely to dip into it if your savings are hidden away. There are plenty of savings accounts you can open that offer interest on top of the money you put away as well, so you can get a little extra when you save. These include everyday savers and a one to five-year Individual Savings Account (ISA) with the latter usually offering the best interest rates.
Pay off your debts
Saving can be even more difficult with debts looming over your head, so try to pay them off before you worry about your savings. Not only is this a great way to boost your credit score but it should also help give you peace of mind as well. This is particularly important if you plan on using your savings to buy a house as a better credit score should make it easier to acquire a mortgage.
