National Savings Day reminds us how important it is to save
On 12 October, the country observed National Savings Day. This day was founded in 2017 by Capital One to recognize those who value the act of saving and to provide simple steps to show getting started isn’t as difficult as it may seem.
It takes a little to save a lot
Having savings put aside as a ‘safety net’ is hugely beneficial and an important part of investing in your future. Starting with the basics. Savings is income not spent, and typical methods of saving include putting money aside in, for example, a deposit account, a pension account, an investment fund, or as cash.
The average household expenses can be split into two categories: discretionary and non-discretionary expenses. Non-discretionary is considered mandatory costs including—rent, taxes and groceries, whereas discretionary is any costs incurred beyond what is necessary including entertainment and dining out. These are generally considered as wants, while non-discretionary are usually referred to as needs.
Usually, when people start to save it is because they have a financial goal in mind. For example, paying for a holiday, buying a house, a deposit for a car or buying a new phone. Having a goal with a deadline encourages discipline, but when you are saving with no tangible purchase in mind, dedication to saving can feel much harder.
How to save
Create a budget
To begin your savings journey, you must create a budget. A budget is a spending plan based on income and expenses. In other words, an estimate of how much money you will make and spend over a certain period, such as a month or year.
For tips on how to make a budget visit our 6 Step Guide here.
Use autosaving apps
If you find it difficult to save or don't know how to start, try using an autosaving app. There’s many available, and some calculate how much you can afford to save each week and automatically move money into a separate savings (or investment) account, while others 'round up' your purchases to the nearest pound and save the change for you.
In theory, these apps should help you save without having to think about it, leading to higher savings building up. To find out what autosaving app will work better for you, visit The Money Saving Experts guide.
Reduce your credit card spending
If you don’t pay your card off every month, the interest will add up over time and cost you multiple times what the item you purchased was worth. It’s important, now more than ever, in the cost-of-living crisis that you avoid using your credit card for non-essential expenses if you can’t afford to repay it in full. This may seem difficult but is an important way to protect your finances in the future.
If you’re concerned about how to make ends meet due to the cost-of-living crisis, visit Help for Households to find out what cost of living support you could be eligible for. Alternatively, if you’re worried about the repayment of a debt that has been passed to Dukes, contact a member of our friendly team today to discuss your concerns.