Saving money can be difficult, particularly during the current cost of living crisis. However, having some money put aside, no matter how little, can provide reassurance.
If you are interested in saving but not sure where to get started or when is the best time, the following article will guide you through it.
Many of us look to start saving when we have a major life event on the horizon. This could be anything from helping to improve your credit score in order to secure a good mortgage or buying a new car.
If this is the reason you want to start saving, then there is no better time to start. While we may try and plan for life events, they can often creep up on us and take us by surprise, so it will not do any harm to start putting away even a small amount each month now.
When it comes to saving for anything, whether it be for something specific or just to build up something to fall back on, it is never too early to start thinking about it. Beginning to do so early on means you will have more options when it comes to making major purchases or even putting towards your retirement. While this might not be a top priority in your 20s, you will thank yourself in the long run if you decide to proactively save during this period of your life.
Many bank accounts also offer better rates if you keep the cash fixed for longer, so it can be very beneficial to save early on and reap the rewards later.
Saving with no end goal can be challenging and it is far more motivating if you have a rough figure in mind. Even if you aren’t saving for anything specific, if you are more goal-driven then decide on how much you are aiming for. This may be subject to change but is useful for when you first start.
If you are saving for something specific, then do some research into how much you need and then determine how much you can afford to put aside each month and how long it will take to reach your goal.
While doing this, it is also useful to review your current spending and determine if there are any areas where you can make cutbacks, such as unused subscriptions or memberships.
If you are planning on saving you will first need to understand what are the best rates/best-saving accounts out there and which is appropriate for you.
You should start by gaining a basic understanding of easy access, fixed rate, and ISA savings accounts. This will give you better clarity on which one you should opt for depending on the benefits you want and when and how you intend to spend the money.
If you are still unsure, enquire about booking an appointment with your bank or speaking with an independent financial advisor.