If you already have some savings, how often do you check on them to make sure they’re helping you achieve your goals? Here are some tips to help you make the most of the money you’ve put away.
Take some time to think about your finances
Can you save more than you do now?
Look at your money
Think about what money you have coming in and what you spend. Knowing how much you have to live off each week or month will help you understand how much extra you might be able to save.
Need vs want
Decide what you really need, and what things are 'nice to haves'. Think about which things make you really happy and which things you only buy out of habit. Do you really need them?
For emergencies
Be realistic about how much you'd really need in an emergency. A good rule of thumb is to have three months' take home pay in an account you can access easily.
Working harder
Are your savings sitting in a current account earning very little interest? Whilst it's good to have some money available for an unexpected cost, you could put some of your extra savings into a dedicated savings account. A fixed rate or notice account, for example, will earn more interest and help your savings grow.
Shop around
Different savings accounts from different providers could give you higher returns. Some investments offer higher returns but often involve a bigger risk and don't allow you to withdraw money quickly. Make sure you're weighing up all the pros and cons when choosing where to put your money.
Goals to help you go further
Having targets to aim for means you're more likely to archive them. Here's some tips for setting new goals.
Be realistic
The perfect balance is setting yourself a goal that you feel will be an impressive achievement but wont be too much of a stretch.
Be specific
Make your target specific, not general. For example, instead of 'saving for a holiday', use 'saving £10,000 for my trip to the LA Olympics'.
Reminders
Create reminders that will help motivate you to continue saving. Do what works for you. For example, stick a picture of where you are saving to go on holiday where you will often see it e.g. your fridge.
Confidence
Once you see your savings start to build, you know you can do it. Take pride and confidence in knowing that you are able to save and achieve your goals.
Stay in control
Feeling like you’re in control of your finances is great for being able to push ahead with building your savings.
Technology help
There are some fantastic apps and online tools which can help you manage your money, whether it's automatically saving for you, rounding up your spending, or helping you calculate your budget.
Think time
Put some time aside to regularly check in on your savings. Set a reminder to do this every now and again to fully understand where your money is at and any potential deals which may be coming to an end.
Check detail
Make sure you understand the T&Cs of any savings accounts you are thinking of opening. Some will have restrictions such as the number of withdrawals, or a penalty if you take out money early.
Reward yourself
As you reach certain milestones, allow yourself a little treat to reward yourself. Giving yourself a reward of some description can help keep you motivated to continue smashing those savings goals.
Remain positive
Don't get too downbeat if you forget about your savings for a little bit or miss a certain target. The foundations you have put in place will remain and more than likely you will be in a far better place than you were when you started. Stay positive.
For more visit the UK Savings week website here.