22nd January 2024
Is it time to give your savings a check-up? We've put together some tips that could help you save more money as we begin the New Year.
As we head into 2024, many people's resolutions will consist of wanting to get their savings in order. Luckily for you, we've put together a guide of our favourite savings tips that you can follow as we begin the New Year.
Making a budget is the first step to saving money and understanding what you're spending it on. Budgeting can help you achieve your long-term financial goals by seeing where you can reduce spending, and then redirecting that specific money into savings. This can easily be discovered by making a list of your income and expenses, helping to create financial security by budgeting your monthly income.
You can also take a look at your spending habits and see if there are any areas where you can save. Are you paying for subscriptions you don't use? Eating out too often? Paying more than you need to for bills and services? Look for opportunities to cut back on unnecessary expenses and you will find it easier to save money quickly.
Rather than just resolving to "save more," set specific goals for yourself. For example, "I want to save £100 a month for the next ten months, so I have £1000 in October". Or "I want to create a budget and make sure I stick to it this year". There are also savings 'challenges' you can take on, which aim to gamify saving. For example, the 52-week money challenge is a savings plan that has you increasing the amount saved by £1 every week, which will net you £1,378 by the end of the year.
If you give yourself a specific target to reach within a period of time, then you are more likely to keep up your savings habits to reach that goal.
If you can, don't wait until you have extra money left over at the end of the month to save. Make saving a priority by putting it within your budget. This will help you build your savings up more quickly.
It's also worth bearing in mind that rates for savings accounts often change, so it's worth checking rates and accounts regularly to make sure your money is working hard for you.
If you're interested, take a look at our savings accounts here.
An ISA (Individual Savings Account) is a type of savings account that allows you to save money without paying tax on the interest you earn. In an ISA, you can save up to a certain amount each tax year, which is set by the government. The current limit is £20,000 per tax year, and this can be split between different types of ISAs, such as a cash ISA or a stocks and shares ISA.
You can't put money into more than one of each ISA every tax year. (For example, you can put your savings into a cash ISA and a lifetime ISA in a year, but not two cash ISAs.)
If this is what you're looking for when saving money, an ISA may be the right option for you. If you're interested, find out more about our ISA accounts here.
There are many apps and tools that can help you track your spending and save money. Some popular options include Emma and Money Dashboard. These tools can help you set and track your financial goals, and provide tips and resources for saving money.
You can also set up automatic transfers from your current account to your savings account so you don't have to remember to do it manually. This way, you can easily save a portion of your income each month without having to remember to do it yourself.
Saving money can be difficult for some, but with a little discipline and the right strategies, you can reach your financial goals. By following these tips, you can start the New Year off on the right foot and build a stronger financial future. Good luck, and happy saving!