Savings. They’re what you make of them.
Whether your savings are a safety net for sudden emergencies, or a launchpad to your next business venture. A ‘just in case’ account or a ‘brand new car’ account. Savings are what you make of them.
So how do we make sure we’re saving in the best way possible? Here are some tips to make sure your savings are smart ones.
Think about your finances
Can you save more than you do now?
Look at your money – Understand what money is coming in and out of your account. If you know how much money you need for a week, you can see how much more you could be saving.
Emergencies – Be realistic about how much you’d need in an emergency, and make sure that money is able to be accessed easily. Ensure that your emergency savings are in an account that is easily accessible to you as well – a separate emergency fund is key to being financially smart.
Need vs Want – Decide what things you need, and what are ‘nice to have’. Are they extras you could live without? While giving yourself a sweet treat once in a while is never a bad thing, when you’re looking to save, these ‘nice to have’s are what can really help you cut down on costs and increase your saving potential.
The right account – For that extra money, putting it into a savings account will help you earn more interest and increase your savings. Do some research to understand which account is best for you.
Top Tip: Whether it’s on a spreadsheet, savings app or on paper, writing things down is a great way to look at your finances, especially if you have more than one kind of bank account. Putting them all down together is a great way to consolidate and understand your financial situation.
Create goals
Having targets to aim for means you’re more likely to achieve them.
Be realistic – Make sure your goal is high, but not too much of a stretch for you. You want your savings goal to be satisfying when you hit it, but not something that is impossible. This sweet spot is right where your savings goal should lie.
Be specific – Make your target specific. Instead of ‘saving for a holiday’, say ‘saving £4000 to go to Spain next August’. When you have a specific goal in mind, it makes it that much easier to be determined to reach the goal. Keeping your savings focused is a great way to stay motivated.
Be confident – Take confidence in knowing you can save even more than you already have. You’ve already proven to yourself that you can do it. Be proud of what you’ve already saved, and remind yourself that you can keep at it. Consistency is key.
Top Tip: Have a visual reminder that will help you save. If you’re saving for a dream holiday, make the destination your computer background, or a picture that you keep on your fridge door. Every time you see that picture, you’re going to feel more determined to reach your savings goal.
Stay in control
Feeling like you’re in control will help you build your savings.
Think time – Allocate some time to regularly check in on your savings. Even if it’s half an hour every week, giving yourself time to check back in with your goals and your savings is important in understanding what your money is doing. Know where your money is and what deals are ending aids you in staying in control of your finances.
Details – Make sure you understand the terms and conditions of any accounts you are thinking of opening. Financial jargon can be hard to understand, so ensuring that you know all the ins and outs of your different kinds of savings accounts will help you become the best smart saver that you can be.
Stay positive – Congratulate yourself on hitting your milestones, and don’t be too disheartened if you miss a target. It’s all about consistency and motivation. You’ve got this!
Top Tip: There are some great apps and online tools to help streamline your saving, whether it is automatically saving for you, collating your spending or helping you calculate your budget.
These are just some savings tips to help you become the best smart saver that you can be. If you want more information about UK Savings Week, have a look at their website.