Saving money comes easier to some than others. The art of squirreling away money is one to be learnt over time, you have to want to save for it to be effective, otherwise you’ll just end up pulling out the cash and spending it on a holiday. Here are some tips to get you started and into a great habit of saving.
Use Cash ISAs
These are great, because once you’ve put the money away you can’t touch it for a set period of time. It does well in stopping the temptation and the higher interest rates can improve your finances come the end of the ISA cycle. However, you need to shop around to get the best deals, and be careful because some banks are sly and significantly drop the interest rate after one year. A wise strategy is moving your money around year on year, getting the most from each ISA before moving it around, just be sure to find ISA’s with a year contract.
Be Careful With Your Saving
When you save you need to be careful, because if for example you put too much money into your ISA you can’t pull it back out. You need to ensure you only put into savings what you can afford, this means sufficiently managing your residual income, which means your spare money at the end of the month after all of your bills have come out. There are many opportunities that could work with residual income and if you manage it properly you could end up having more than you think.
Switch Your Current Account
By switching to a different provider you can save an average of £70 a year. But it isn’t just this, many banks offer a changeover bonus of around £100, giving you a sum to put in savings. It’s no work, your direct debits will be switched over automatically. If you own a business the same applies, the majority of business accounts can also be changed over offering more leeway with loans and business overdrafts. The Midata tool can gauge which current account is best for you based on how you actually use your bank account.
Change Your Energy Providers
You can save more than £400 if you switch energy provider, especially if you have never switched before. Switching should be part of your personal finance and it can save you a lot of money which you wouldn’t really expect. The switching process is incredibly simple. You could even consider alternate forms of energy supplying, for example if you don’t think you use too much water because there aren’t many of you in the house it could pay to use a water meter. All money saved can be put into a savings account. In terms of changing you can also try out new home and car insurance as it drastically brings your premium down. You should do this annually.
Saving is an extremely fruitful thing to do, especially when we see there is far more to it than simply putting away 15% of your paycheck each month. By following these techniques you can comfortably find more money for your savings with relatively little time spent.