Even if making new years resolutions isn't your thing, the beginning of the next 365 days is a great time to take stock of your finances. Here are four simple tips to help you refresh your current savings or help you start a new savings habit in 2023.
Set a savings goal - no matter how small
An easy way to build a savings habit is to set a savings goal and stick to it. Whether it’s a new car, a dream wedding, or simply a rainy day fund, putting money away regularly is much easier when you have a target and a deadline in mind. No matter how small, putting a small amount of money aside on a regular basis is a good habit to get into.
Some banks allow you to set goals or name savings accounts, which can help you to keep focussed. If you prefer a paper-and-pen method, you could consider keeping a savings journal or creating a schedule detailing how much you’ll need to save over a set period to meet your goal.
Automating your savings is another way of making sure you are sticking to your goal with the miminum effort - even if it's a few pounds each month - transferring an amount to your savings account on pay day is a painless way of sticking to your goal.
There are lots of online tools nowadays that could make it easier for you to achieve your savings target. These include ‘round-up’ functions (where transactions are rounded up to the nearest pound with the difference deposited in your savings), ‘lockable’ spaces that stop you from dipping into your funds, and apps like Chip that use smart algorithms to assess your spending and work out how much you can save each month.
Find out more here.
Choose the right account
It's all too easy to stick with a familiar savings account you’ve had for a long time. Choosing a savings account with so many on the market can feel overwhelming, which is why we created a simple guide to the main types of account available and how they could help you meet your goal here.
It’s also worth reviewing your savings accounts at least once a year - sometimes there will be alternative accounts available that maybe more beneficial for your circumstances. You can arrange a review with one of our Qualified Savings Advisers online or by calling 01635 555700.
Review your current spending habits
Do you know how much you spend on non-essentials? It's worth reviewing whether ditching that daily takeaway coffee or sandwich from the expensive bakery near your office will help you to reach your savings goals quicker. Over time, small decisions like walking rather than taking the bus, cooking at home instead of ordering in, or streamlining your TV subscription services can add up to a massive change.
If you're unsure of where to start, creating a budget is a helpful way to review your financial situation and how much you’re spending. You might be surprised about where some of your money goes! The government has a free, online budgeting tool you can use to get started, while MoneySavingExpert.com offers a free, downloadable template.
Ready to smash your savings target?
Book a savings review with one of our friendly Qualified Savings Advisers - they're ready and waiting to help you find the right account. You can meet with them online, chat over the phone, or pop into one of our ten local branches. To book an appointment, click here.