Saving money doesn’t always come naturally. But it’s a very good idea to have safety net savings and also save for a pension. And then of course to put money aside for bills and fun items such as holidays. Here are a few ideas to help you save.
1. Separate your savings
When all your money is in one pot, it can be easy to accidentally dip into your savings. To help solve this issue, Starling has an in-app feature called Spaces, which ring-fences money away from your main balance.
You can even give your saving goal a name, set a target amount and help with motivation by adding a picture too. How about a photo of golden sands and a blue sky for that beach holiday? Just go to Spaces in your app and tap the green ‘+’ sign or ‘New Space’ button, then ‘Saving Space’.
2. Autopilot your savings
Automating your savings means you don’t have to actively remember each time you need to put money aside.
Starling’s Round Up feature can help you round up anything you spend to the nearest pound. You assign the rounded up amount to any saving Space you choose, and then watch it add up over time.
With the Spaces feature, you can also set up regular, automatic payments, for example after payday. To do this, go to your Space, tap ‘Add Money’, enter an amount and set the frequency to daily, weekly or monthly.
3. Make a budget
To plan your finances effectively, you need to know how much money is coming in and going out. Making a budget can help give you a clearer picture of your finances, and see where you can make savings. The Money Advice Service has a great free online planner.
4. Question your purchases
Before buying larger ticket items, ask yourself if it’s something you need now, and if you think you’ll want it in a year’s time. Questioning your shopping decisions might make you realise when you don’t need to be spending money.
5. Time delay before you pay
Another great way to stop impulse buys ruining your saving plans is the 24 hour rule.
When you’re about to buy something expensive, wait and have a think for a day, and see if you still want it then. The simple act of waiting can help you decide if it’s something you actually wanted or if you’re just doing it for the sake of buying something.
6. Streamline your spending commitments
Review your everyday spending on necessities like bills and groceries, to look for easy savings you could make.
Take some time to see if you can find cheaper options for the following – the annual savings could run into £100s:
- Energy bills
- Mobile phone
- Branded food & drink
- Why not add the money you save into your savings?
It also may be worth taking a look at discount codes for things you’re buying online. To help avoid spam, a tip here is to choose well known and trusted sites, for example MoneySavingExpert and Vouchercloud.
7. Pension savings
If you’re auto-enrolled in a pension, you contribute a certain percentage of your salary on a regular basis. Any time you get a pay rise, you could pay a proportion of the increase into your pension. This should mean more squirreled away into your pension, without noticing a drop in the money in your pocket. It’s important to remember, as with all investments, capital is at risk and the value of your investments can go down or up. You may get back less than you invested.
Within the Starling Marketplace there are several pension providers available to Starling customers, such as PensionBee and Nutmeg. For those not familiar, Marketplace is the part of the Starling app that offers customers a range of third party services, including pensions and insurance.
The above article is intended as general information and does not constitute advice in any way. You should take independent legal advice if you have any questions about your specific circumstances. Remember, the value of your investments can go both up and down, and your capital is at risk.