How to start saving

It’s hard to start saving. Especially when the cost of living is going up so quickly. Here are five tips to get you started:

1. Set a realistic target. Rather than putting some money away, tuck away the cash for something specific. But start small. An item of clothing. A small electronic device. If you want a holiday in the Caribbean and you’ve only got a tenner to put away each month, you’re setting yourself up to fail. The bigger goals can come later.

2. Set up a a budget. Budgets help you to take more control over your spending. To do this you will need to list all of your outgoings such as bills, living costs, travel and leisure spending. Of course, you need to be realistic with these. See how you’ve been spending last month. Set a limit for the ones that can vary each month. Try the Money Helper Budget Planner to get you started.

3. Make it automatic. It’s easier to save if you set up a regular payment. This might be a standing order directly into your Credit Union account. Alternatively, if you are working, the most painless way to save is via payroll deduction.

4. Free up cash by paying off your most expensive debts. It’s hard to find spare cash if your money is spent paying off existing credit agreements. You could consolidate your most expensive debts into one smaller payment. Rather than using high cost creditors, consider a Credit Union loan instead.

5. Monitor the growth in your savings. If you see that you’re doing well, see if you can save more. Use the Money Helper Savings Calculator to get started.

It’s hard to start saving. We hope these tips help. Sign up below to receive money tips straight to your inbox.