Starting to Save
Making the decision to save money is only the first part of the battle – actually putting money aside can be a lot harder than it seems, and it’s important to set clear goals in the first place.
The first decision is deciding what you want to save for, and how much you need to save. You then need to work out how much you can afford to save, and how long you want to save for.
Once you’ve worked out what you can afford to pay, it’s important to find the right savings account to save into.
Some regular saver accounts pay a high interest rate, although the money is often locked away for the period you save, and the interest is only paid at the end of the term. These accounts typically allow you to save a regular monthly amount of between £25 and £300 a month.
Another useful way to save is through a Cash ISA, which allows you to save a little over £5,000 a year tax-free, and will also allow regular payments into a savings account.
One of the best ways of saving money is to put a little bit aside on a monthly basis, just after payday. Setting up a standing order is one of the easiest ways of saving on a regular basis, and will take a fixed amount of money from your bank account each month and put it into your savings account.
Other ways of saving include putting a lump sum of money into a fixed bond, which can stay invested for a set period of time, typically several years.