3 Steps To Start Saving

In a climate where credit is practically thrown at us and savings rates have been at all time lows for years now, it is easy to see why people might be saving less and less. 

The problem here is that we might be raising a new generation of people who simply do not know how to save as it has never been a part of their financial education. Some people simply do not know how to start saving, which is where we come in as today we are sharing with you 3 steps to start saving. 

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Cut down on your spending

This is always going to be the first place to start when you have decided that you want to save for something. 

Take a look at your current income and your bills and spending habits in order to work out where you might be able to make savings. You could reduce bills by switching suppliers, consolidating debts and you might be able to make cuts in your grocery shopping.  

Many of us fall into the trap of struggling to control our spending online as it is so accessible and immediate. Be mindful of this and take steps to ensure you are only buying things that you really need to ensure that your expenditure remains steady. 

Set up a designated savings account

It makes sense to keep your savings separate from your everyday incomings and outgoings. This will ensure that you don’t accidentally dip into them and you will also be able to see the pot building up. 

There are many different types of savings account so you will need to do a little research before you open one. You might choose a regular saver where you will put a certain amount in each month, which can be handy to set up as a standing order on payday so that you know you have saved that month. Or perhaps a notice account would suit you better as you can put your money in but then need to wait a certain time period before withdrawing which can prevent impromptu spends. Think about what would work best for you and how flexible you will need it to be and then most accounts can be opened online so you can set one up today from the comfort of your own home. 

Think about an end goal

When you first start saving, it really helps to have a reason for saving in mind. Whether your dream is to spend time talking through purchases with yacht builders or to build up a deposit for a house, you know that you are going to need to save for it. You also know that it will be worth the effort as these are the things that you really want.

Once you have a clear purpose for saving in your mind, you need to focus in on it. You could name your savings fund after your savings goal or pop up a visual reminder at home. Thinking about the end goal should help keep you on track.