One of the hardest parts of adult life is when you commit to saving money for the future. Whether it’s for your first home, or for retirement, saving money is exceptionally important. Whether you’re limiting your spending by using online e-wallets where you can only spend what you put in, or if you’re setting aside money each month into a savings account or ISA, there are many things to be aware of when you’re saving money.
Emergencies
There’s always bound to be something that pops up that can really get in the way of your savings. This is why it is always important to put aside an emergency fund just in case something happens, whether it is an unexpected bill or a car breaking down. Putting a little extra aside for emergencies means that you are always prepared no matter what life throws at you.
Interest rates
Interest rates regularly fluctuate, so it is important to keep an eye on your savings accounts and ISAs. Although in general, interest rates are focussed on the same figures released by Bank of England’s Monetary Policy Committee (MPC) in order to keep a balance on goods and services, some banks regularly compete against each other with their interest rate. Chasing the best ones can really help to put you in a better position when you’re saving.
Initial costs in relation to future costs
Spending is inevitable. Whether you’re in need of new appliances or clothes, as long as your spending doesn’t get out of control each month and you’re not dipping into your savings, spending shouldn’t be frowned upon. However, it is important to think to the future and look at initial costs when compared to future costs. Although the initial cost of an appliance, for example, may be relatively low, it could have a major impact in the future as it could be a drain on your electrics, gas or water, making your bills higher. However, if you look at the economical side of the appliance then the investment in your appliance, even if the initial cost is higher, is more than likely to save you money in the future. Similarly, if you attempt to ‘quick fix’ something like electrics yourself, it can be costly to repair in the future, not to mention dangerous. You can try Home Team Electric or a similar local company to help with any repairs or rewiring needs you may have.
Travel expenses quickly add up
The way you travel can have a serious impact on how much you can put away in the future. Looking at the cheapest way to travel, for example if you have to get a bus every day choosing a monthly ticket rather than purchasing a brand new ticket every day is important. Using an Oyster card in London, even if you are only there for a few days is also a great way of saving money when travelling around the capital and this has been made even easier with contactless cards now being used as part of the system. Car sharing is also a great way to keep your travel expenses down which can help you to continue saving for the future.
Collecting shopping points can make a big difference
Most shops and in particular supermarkets offer savings and points cards that should always be used. Nectar points are also a great example of this as the more points you gain the more monetary value they have. This means that in a year or so, depending on how often you use your card, you may be able to use the Nectar points to pay for a week’s worth of groceries, giving you more money to save. Some stores will also look at what you buy frequently and send you discount coupons, saving you even more money. In addition to that, by linking your Mymail and Nectar accounts, you can take full advantage of the Daily Mail Rewards offered by them, collecting points with the Mail to boost the balance.
Switching Your Bank Account Can Save You Money
When you’re saving money, switching your bank account can have a huge impact. Some banks simply offer better deals than others, for example Santander offer a 123 current account which can give you cash back on household bills and interest on your balance. Switching is also available for up to 99% of small businesses to, so it is possible to save for both businesses and personal accounts.
It Is Possible To Get Carried Away With Savings
Saving for the future is extremely important, whether it’s for your retirement or for your first home, however it is possible to get carried away. You need to remember that your life is for living too so it is important to find a balance between saving for your goals as well as for emergencies, but not to lose sight of today.
