There is so much information available to us about how to invest, how to get a mortgage and even how to become a millionaire, but what happened to the basics? Whether you have never saved and want to get started or you end up in your overdraft every month and just cannot figure out where to begin, then this is the article for you. 

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By keeping some money aside, you can be prepared for financial emergencies, whether you suddenly need a new car or maybe your boiler breaks down. If you have that cushion, you can reduce the stress when these expensive events arise. This is called an ‘Emergency Fund’ and is a great place to start when saving - you only ever touch the money if you really need it. 

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But, it doesn’t always have to be about practicality.

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Do you fancy a holiday? Do you want to celebrate your birthday in style? Doing activities you enjoy and spending money on things that make you happy is crucial and even if you are on a low income, you should never feel guilty for doing just that. Think about your goals, both practical and fun and that will help you work out your savings goals. 

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Tip 1 - Separate Your Money

If you only have one bank account, it can be confusing to figure out what your money is allocated to and it makes it easier to spend it all. By creating a separate account for saving, you physically split that money up so you can see what you have left to spend and track your savings progress. Use comparison sites like Compare The Market to see what accounts are currently available and which offer the best interest rates.

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Tip 2 - Do Your Research

Do you need to have access to your money at any time, or will you not need it for a year or so?

Factors like this will change which account will work best for you in the long run - Easy Access, Cash ISA, Notice accounts, Lifetime ISA - so make sure to figure out your needs. Read our article here to learn more about the different types of ISA accounts available.

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Tip 3 - Now what?

So you have your separate savings account, but how do you actually save money? Here are some methods we like, to help you get started. 

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The Percentage Method - On payday, transfer a certain percentage of your income to a savings account straight away (try 10%). This will hopefully deter you from spending it or running out of money to save. 

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The Leftover Method - If you’re lucky to have any money leftover at the end of the month, then put this into savings before you get paid again, then you can start from scratch next month. 

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The Cash Method - If you can’t help but dip into your savings, then try withdrawing a certain amount of cash each month and putting it into a money box that you can’t open - set yourself a time limit then break it open and count your cash.