Monthly Archives: December 2015

How to start saving right now

‘When I was young I used to think that money was the most important thing in life; now that I am old, I know it is’ – Oscar Wilde

Saving money has been a big target for me since summer 2014.  Now saving has developed into a major habit of mine – it is actually the very first thing I do come payday. I open my accounts, check what’s in there and transfer money about.

I actually love seeing the figures going up; to me it’s as exciting as spending it on something new. It gives me a sense of security and, dare I say it, of achievement.

I believe not enough people save enough money these days, if any at all, and I think that’s not healthy. I also personally think it feeds into economic difficulties we’re facing. Many people complain about the widening gap between rich and poor, and while the facts may support this, are we all doing as much as we could to make ourselves wealthier. That said, according to a Halifax report in recent years, the average amount saved per Brit is IMG_1346 (2)£5582 – so there is some thought going into this.

Saving is something you could be thinking about now as one of the traditional New Year’s resolutions – though it is something that you can and should be starting at any point in time.

Since starting my new job at the end of March 2014 I have saved over £7000, although admittedly I have taken advantage of having no mortgage or major bills to pay, nor family to support, in that period. This has been managed while on one salary over £10,000 below the average UK annual salary back in 2014, and on a more recent salary still well below that figure.

In this short series on savings, we’ll look into why we should save and how to go about it. I’m no mastermind of money, have no financial background, and can probably learn as much from your comments as you will from mine.

  1. Why save? In this two-part article we’ll have a look over reasons why we should all be saving money (right away!). I feel it shouldn’t be a chore we all want to avoid, but a pleasing, comforting habit. What’s more, we could be saving for our futures, for a holiday or for a special event – or more than one of these where possible.
  2. 3 techniques for saving success: What is the best way to set aside money regularly? I’m going to look at three options available, two of which I have tried, one of which I haven’t but others have testified to.
  3. How to make your savings super: We’ll uncover a few ways to get the most out of any money you have stored up, and this really will be an article where I hope you will share your own ideas – the possibilities really are almost endless!
  4. A brief introduction to ISAs: What are the advantages and disadvantages of saving into Individual Savings Accounts? How do they work and why use them?
  5. A brief introduction to Easy Access Savers: Again, what are the pros and cons of these bank accounts? I’ll share my experience of them to date.

I really hope that through these five posts you’ll be encouraged to take up saving, either again or for the first time, and I do hope that you will leave your own feedback, whether that’s your own views and experience as a perennial saver or questions as a less confident saver. As ever, subscribe to my blog or follow me on Twitter (links in the top right!) to keep up-to-date with what’s going on at SettleMentality.