In the UK, saving money, whether it be for later life or even a rainy-day fund, is a concept increasingly becoming a rarity. Studies have found that a quarter of adults have no savings, with one in ten people spending more money than they earn, and one in ten adults over the age of 55 have no savings for their future at all.
To combat this growing trend and set yourself up properly for the future, why not think about some of the ways you can save your money, and some of the benefits you might be able to afford if you do so? For those looking to be a little smarter with their savings this summer, here are some enticing reasons to save money each month.
There’s nothing worse than getting to the end of the month and having to scrape by till payday, and while surviving on pittance might have been a fun challenge as a student, it can quickly become an issue when you’re an adult. Having a buffer of cash set aside for fixes to the essentials in your life, such as leaks in the home or car breakdowns, can give you that peace of mind going forward. Also, having a monetary cushion to fall back on will allow you to feel less guilty about spending on things for yourself!
Top-Tip: Over half of those living in the UK say that after paying for monthly outgoings such as mortgage payments, energy bills and groceries, they simply don’t have the funds to put away. Why not see if you can shave some of the unnecessary cost off these bills by shopping around a little? Trimming down excessive purchases of things that don’t get eaten during your weekly shop will save a few ‘pounds’ each week, and comparison sites are always available to help see if you can save money on utilities and even broadband.
Saving and Investment
One of the smartest things you can do with any monthly savings is to try and turn it into an additional source of income. Using your money to make an even greater monetary gain can be as hands-on or hands-off as you’d like, and savings that are just sitting there in your account can have much more potential when you explore some readily available avenues.
The 1P savings challenge is a new trend that more and more people are starting to try. By saving or investing an increasing amount each day for an entire year, starting at 1P on January 1st and finishing up at £3.65 on New Year’s Eve, you can save near to £700. Getting the right amount of change to actually correctly implement this might make it hugely inconvenient and thus more trouble than it’s worth – a bit of a gimmick – but nonetheless the exercise illustrates how seemingly insignificant amounts of money can add up to be substantial.
For those that have a little bit more capital and are looking to invest in something larger and perhaps more lucrative, property investment is an exciting prospect, particularly in the UK market. Areas such as Liverpool and Manchester are undergoing rejuvenation projects that see them balancing the scales of power once dominated by London. These cities offer affordable, high return investment projects, plus investment companies such as RW Invest provide a range of developments to satiate investor demand.
This might not be as financially beneficial as a long-term savings plan or an investment in property, but giving yourself something to look forward to is always a motivating factor to work hard. Got a dream holiday that you want to go on, but can’t get the funds together by the time you’ve decided? Often holidays tend to get more and more expensive the closer you book them, and so despite the success that some have in ‘last minute bargain-hunting’, booking in advance will usually give you the best possible price for something more substantial than sporadic.
Not only this, but preparing and organising a big trip in advance gives you the opportunity to allocate funds incrementally over time, and before you know it the holiday will be paid off in a much more painless way than ‘lump sums’ weeks before departure.