Starting a savings habit can be really hard, especially on a stretched income. But, it can be really helpful to have a small nest egg for unexpected costs. Here are 6 tips on how to start a savings journey.
1. Record your expenses and make a budget.
If you figure out how much you spend a month and keep track of it, its easier to see where you could save a small amount of money. You can also design a budget plan and add a savings amount into your budget. To make a budget, use what works for you, pen and paper or an online tool
2. Savings challenges
You could try the 1p savings challenge – save one penny a day for a year. Save 1p on the first day, 2p on the second day 3p on the third – saving what you saved the day before except a penny more. After 365 days you could save over £650.
Alternatively, see if your bank does a spare change programme, where your spends are rounded up and you save the difference.
3. Try a ‘no spend’ weekend
If you can, try and do a ‘no spend’ weekend once a month. Do activities like walks, movie nights, board games and free museums. Save the money you would have spent.
4. Make saving automatic
Set a savings amount and create a direct debit from your current account into a savings account. You can choose where and how much. It keeps that money separate.
5. Get cash back when shopping online
Try top sites like Topcashback or Quidco. There is often a code that gives you a discount on your spend.
6. Set a saving goal and choose an account that supports you with it.
Leeds Credit Union offer a range of savings account that protect your savings. They offer a christmas club that helps you save for christmas and a regular saver that restricts how many times you can dip into those savings.