This week I offered some of my top-tips for practical ways to save money. Today I would like to discuss the importance of savings and part of my role within the savings team at Harpenden Building Society. 
The importance of saving
The cost-of-living crisis is showing little sign of slowing down. In modern times, things have rarely been as financially tough as they are right now. In these uncertain times, it has never been more crucial to understand the importance of savings. There are several reasons you should be saving your pennies right now besides having enough to keep the wheels turning during some difficult times.
Emergency fund
It’s essential to try and build a safety net for an emergency. The only thing we can fully expect, is the unexpected. Essential items in my world have a habit of detecting financial distress and using this as an optimum time to break, fail or fall apart. This could be anything from your car breaking down and needing often expensive repairs, to unforeseen circumstances causing somebody in your home to lose their job. In such situations, having savings in place can smooth the financial shock, but most importantly reduce or eliminate the need for further, often expensive borrowing at the last minute.
Long-term security
The more savings you have put away, the more secure you will feel as you have that financial safety net as described above. There are often some non-monetary advantages of savings including a better mindset and becoming more content. Savings can feel like a lifeline in uncertain times and times have rarely been as uncertain as they are right now.
Something special
Regularly saving money lessens the financial burden on your finances when purchasing a big-ticket holiday or a new car. Opening a savings account can not only help you to gradually build up the funds for a big purchase but can also help you by adding interest to the savings.
Reduces stress
Lack of, or even perceived lack of money is a precursor to poor mental health and is a leading cause of stress. The knowledge of having a safety net to fall back on will help both manage and reduce stress levels and help manage both your mental health, and those of your nearest and dearest.
Something to leave behind
We don’t want to think about our mortality, but two things in life are guaranteed; death and taxes! If you have a family that you will be leaving behind when your time eventually comes, wouldn’t you like something to leave to them, so they don’t have to struggle and have something positive to help them in little in their grief? While inheritance tax might take some of it away from you, what’s left could help your family come to terms with things in a bit more comfort.
My role at Harpenden Building Society:
I have worked for Harpenden Building Society for nearly 12 months having previously worked for another Building Society for 10 years. Although it feels like I have become part of the furniture here, I am often faced with a curveball and have to ask my fantastic and ever patient colleagues the best way to do something- only for me to then do it my own way!
The Building Society sector for me is addictive. From my second week at my previous employer I was hooked. Having worked in Financial Services for over 20 years, it is the multi-faceted requirements of the role especially in comparatively smaller organisation which I enjoy the most. This affords me the opportunity to get involved in elements of Financial Services that I simply wouldn’t be involved if I were with a larger organisation. Does this mean I’m a jack of all trades? I prefer a good all-rounder!
Primarily, my role is to prudently and diligently manage the Harpenden Building Society savings book so that we offer fair value to all our Members and that the book remains commercially viable. We want to ensure that our loyal and existing members get a fair rate of return for entrusting us with their savings, whilst also ensuring that we have the products and proposition to be attractive both new and our future Members. As all things in life and nicely connected to my earlier blog this week, balance is always key.
One of the most exciting elements of my role is the design and implementation of brand new products. It’s great to identify a potential customer need, then design and implement a solution. One of the great things about working in a smaller organisation is that we can generally get things done quicker than some of our larger competitors, and see the fruits of our labour. One thing I am immensely proud that we achieved this year was the launch of our first ever Online Platform where customers can apply for a new account from the comfort of their own home. This meant that we were able to attract a much larger audience than previously.
Recently we have been working on some other big-ticket items and have more up or sleeve for next year. Stay tuned for more to come!
Jon Sweeting
Savings Product Manager