Posted by Flora Maudsley-Barton | May 10, 2017
Why Should I Save?
Saving makes you fitter, thinner and more popular.
Okay maybe not completely, but it's sort of true.
Saving money puts you in charge of some simple things. The secret that we have learned over time is that having that money saved really does make you feel more in control of your one part of your life. It saves you worry and time because when something unexpected happens, you're ready for it.
Here's how it works…
You decide to save the £15 a month that you can easily afford.
Nothing really happens at first. Except you might just feel you're doing the right thing.
10 months later, the car needs a new tyre.
But you don't need to panic.
You've got the money.
New car tyre sorted.
Let's just take that again a bit more slowly with some questions.
How do I "decide" to save anything?
- Have a look at what you spend over a month or so to see if you can squeeze out a bit of spare money.
- We have a budgeting guide to help you get right into the corners of your spending. Shoot an email to us here or use the contact us form.
- Most of my clients who use this tell me that they manage to save a little just from looking over their bank statements.
- Yes, just turning the spotlight on your spending will probably help you spend less!
- Now you can work out how much you can spare each month. Whatever it is, it's worth doing.
Where do I put it?
Ah yes, this is important.
- Move it. Out of your current account.
- We call our current account "the seive". Money runs through it pretty quickly so it's important to put the savings to one side.
- If you do online banking, it's easy to add an extra bank account.
- You can divert a little into that whenever you get chance.
- Then you can see your savings grow.
I've already got a pot for emergencies. What next?
You have already made a great start.
Now you can start to save for the things you actually WANT.
- A holiday, paid for with savings instead of credit feels better. Honestly.
- Spread out the cost of the deposit for your new car before you buy it (instead of letting your credit card take the strain afterwards)
- Buying a house is easier and cheaper with a bigger deposit.
So back to that tyre…
You've done your sums and decided to save the £15 a month you can easily afford.
You've set up your 2nd bank account and you see it get bigger each month.
It does actually feel good!
10 months later: car - tyre - sorted
Savings begin again. This time with a bit more because you've learned the secret.
Because you're ready for emergencies, you don't need to worry - you won't need to lose sleep so you'll have more energy and have more time to eat better and have time to spend with your friends.
So you see, saving money DOES make you fitter, thinner and more popular!
Everybody starts somewhere, it might be a tyre, it might be a wedding, it might be a holiday. It might just change your life.
Time to give it a go? Send us an email, we’ll send you our guide, and we’ll get you started.
The Financial Conduct Authority does not regulate bank/deposit accounts