Getting into the saving habit
There’s no better time to take stock of your finances and keep track of where your money is going each month.
As our lifestyles continue to change, it may help to be mindful of how this can affect spending, to be aware of regular costs that may start to increase again and understand opportunities to build lasting savings habits.
Here are some costs that really add up over time. This can help show how much you could save if you built new cost savings into ongoing habits. It can also show how much to expect to spend again if you don’t. These aren't necessarily avoidable expenses for everyone and we wouldn’t tell you what you should and shouldn’t buy. Consider the impact on local businesses and on your finances when cutting back.Infographic: Title says What's the cost? Could you make savings? A list follows of many expenses that some people may or may not be able to trim over a year. Buying lunch every day - £1,410. The gym - £480. Takeaways - £451. Childcare - £6,600. Commute - £1,752. Holidays - £4,800.
*Sources: average takeaway spend per year from BBC, average gym costs per year from Money Advice Service, average cost of buying lunch per day (multiplied by working days per year excluding legal holiday entitlement) from Independent, average commute cost Total Jobs, average spend of family holidays per year Standard, average cost of UK childcare Family and Childcare Trust. All sources accessed July 2020.
Find a home for your savings, and save each month
When you’re saving for something specific or want to build up your savings for a rainy day, rather than simply leaving it in your current account, you can set up a new savings account where you can see your cash build up.
If you’re setting your cash aside, having this separate account can help you avoid the temptation of dipping into your savings. A lot of providers will let you name your account too, so whether you go with ‘New bathroom’, ‘Monthly set aside’ or ‘Sports car’ it’ll help to keep you focussed on your goal.
Two ways to save monthly:
- Standing order on pay day – automatically moving money out of your current account as soon as it goes in, removes the temptation to spend it.
- Sweep up left over money - if you have left over money at the end of the month (just before payday), put this with your savings so it’s going towards your goal, rather than being spent the next month.
There are many different types of savings accounts on the market. If you’re not sure what type of savings account to get, answer these questions to find out or take a look at our variety of savings accounts.