I want to start saving money. Where should I start?
It's important to have a savings fund, no matter if you're a young professional just starting your career or a seasoned workforce veteran.
To be in a healthy financial situation, it’s recommended to have a fund of money that you can rely on for 3 to 6 months.
This fund should support you in case of any emergencies or unforeseeable circumstance. But many adults struggle to keep this amount of money in their savings and don’t know how to take the first steps towards saving.
Here are the best tips to begin being smart with your money.
Set a weekly or monthly budget
Monthly budgets for things such as food, entertainment, and travel are important to manage because they help you set long term goals. The sync. app has live tracking of your spending as well as a great breakdown of where your money goes on a monthly basis. Budgets can help you analyse where you need to reduce your spending and where you can increase it accordingly. Find out more in our blog on starting a budget.
Open a savings account for your emergency fund
It is easy to spend money that is sat in your current account at the end of the month. Resist the temptation to spend by setting aside money in a dedicated savings account. This is just for your emergency savings, so keep your holiday or Christmas savings in a different place. Make sure it has easy access so you can get your money in an emergency. Find the savings accounts with the best interest rates on Money Saving Expert.
Add into your savings when you get paid
Set up a standing order for this amount of money on the day after you get paid. Putting your money straight into a different account helps to reduce the temptation to spend and guarantees your savings will keep slowly growing.
You can also use this method to put a smaller amount of money into a separate ‘fun’ account to save holidays, new clothes, and birthdays, Christmas or anything else you’d like to save for.
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Make changes to your routine to save money
There are some simple things you can do to decrease your spending, which allows you to save more each month. This may seem obvious, but eating out at restaurants and regular takeaways can have a big impact on your bank account. Although the cost of things such as morning coffee, or snacks from a local shop may seem like small purchases, they add up quickly.
One of the best ways to save money is to buy groceries at the beginning of the week, and then use them to prepare your meals for the remainder of the week. This ensures that you can set a weekly budget for food and have all of it prepared daily for quick and convenient consumption.
Another big expenditure that you may have are new clothes. Recent trends show that more retro and casual looks are becoming increasingly popular and these clothes are easily found in secondhand stores. This is great for your wallet because these clothes look great and are affordable, and if you shop at consignment stores you can find designer clothes for low prices! In addition, if you are concerned about the environment, this is also a great way to protect the earth as you will not be expending natural resources by buying new clothes.
Hopefully, our money-saving tips will help you build an emergency fund and save you extra money every month. If you have any additional methods that you found help you save money and you want to share it with our community, send it to us on Twitter.
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