The Easiest Ways to Start Saving
One of the hardest things about saving is getting started - it’s so difficult to get going. Once you do though, it can be extremely rewarding. This is why making the process of saving easy is so important. Once you master it, you will be able to take back control of your finances.
Having savings is important - it means you have a cushion to fall back on in case of emergencies. It also means you can enjoy being able to buy expensive things like a new car, the latest smart phone, even pay for your wedding, without getting into debt or spending beyond your means.
The easiest way to start saving is by following these 4 easy steps:
- Create a budget
- Prioritise your goals
- Assign target amounts
- Automate your savings
Create a Budget
Once you have decided that you are going to start saving, the first thing to do is to create a budget. A budget is a plan you write down to decide what you are going to spend your money on each week. You can read more about how to create a budget, and get some helpful free tools to create one on MoneySavingExpert.
When you have a budget in place you will be able to see how much you can afford to save and how often you can save it. It is also a good way of seeing what costs you can cut back on to save more!
Prioritise Your Goals
To start saving effectively you need to have a vision of what you are saving for. Creating specific saving goals can help to motivate you and make saving fun rather than tiresome.
The great thing about setting aside money is that you have control over exactly what it is you want to save for. Your saving goals could be anything from a new car, your dream holiday or something as simple as a pair of new shoes.
Assign Target Amounts
After prioritising your goals and deciding what you would like to save up for, you will need to establish how much money each goal requires. Doing this means you can set a realistic date that you want to reach your goal by, whether you're saving up weekly or monthly.
For example if you’re saving for a holiday then you will need to think about flights, accommodation and spending money and how much it will all cost.
Automate Your Savings
Automating your savings is one of the easiest ways to smoothly save up for your goals. You should treat your savings like a bill so that at the end of the month you’re not just saving what you haven’t spent.
The traditional approach is to set up automatic transfers / direct debits to savings and bank accounts. This way you don’t have to remember to make a deposit every month.
We have built PiggyPot to make automating your savings easier than ever before. Set up multiple goals in seconds - your next holiday, a new phone, a new TV, next year’s car insurance - connect your debit card and start saving automatically.
Once you’ve started saving it’s simple to track the progress across all your savings pots at a glance, on the my pots screen. PiggyPot also lets you set up as many pots as you like, meaning you can save and achieve multiple goals at the same time!
Save smartly and try PiggyPot now for free.
No matter what approach you chose to automate your savings, it is important that you do so. One of the main reasons people fail at saving, is that they simply forget to save. Hopefully with the new technology now available on the market, this will be a problem of the past :)