By working out how much you can save and keeping a close eye on your spending you can have enough money to put aside each month.
Set your budget
One of the best places to start when you’re thinking about saving is to set yourself a budget. Work out what you can afford to save each month by making a list of your monthly expenses. Make sure you include regular expenses like your rent or mortgage payments as well as other essentials like utility bills and food shopping.
Also, include some money for less regular spending like going out with friends so you know exactly how much you expect to spend each month.
When you’re setting your budget, be honest with yourself. Make sure your budget’s realistic and you can stick to it otherwise you won’t reach your savings goals. Once you’ve written down all your expenses, subtract that amount from your monthly income and you’ll know exactly how much you can put into your savings account each month.
Cut down your expenses
If you’re about to start saving, think about where you can cut down on your expenses to give you more money to put into your savings account.
Reducing the amount you pay for non-essential things is a great place to start. Simple changes like taking a packed lunch to work rather than going out to buy it each day or not buying a coffee on the way to work in the morning could save you hundreds of pounds every year.
And if you enjoy socialising with friends, you can make it cheaper by taking advantage of the many discounts and vouchers available online.
Then there are the essential things you have to pay for like your electricity, broadband and phone bills, your rent and your weekly shopping. You can cut these costs too, just by shopping around. With so many companies competing for your business you’ll often find there are new deals available which can reduce your costs.
Use price comparison tools online to make sure you’re getting the best deal for your phone, broadband, gas and electricity. And if you find a better deal, switch your supplier and use the money you’ve saved to top up your savings account.
Stay in control of your money
Once you’ve set your budget and worked out where you can make savings, it’s time to start managing your money.
It takes just a few minutes to open a savings account online. With just a few clicks, you’ll be up and running and ready to start managing your savings. With an online savings account, you’ll be able to see how much you’ve saved every time you log in. So you’ll always know whether you’re on track.
And with instant transfers between your current account and your online savings account, you can top up your savings whenever you like. So if you’ve got some money left at the end of the month, simply transfer it into your savings account and start earning interest.