Are you hoping to start saving some money? Whether you have a big purchase in mind, or you’d just like to gain more control over your finances, the following tips will talk you through how to get started with saving. 

Set a smart goal

Saving without an end goal in mind can sometimes feel like a pointless task and often leads to spending the savings instead.

In order to avoid this, take some time to set yourself a smart goal. This is a goal that is specific, measurable, achievable, relevant and time-bound. For example, ‘save £1000 by the end of 2023’ or ‘save £250 a month for a year’. Having a specific goal makes it far easier to work towards. Ensuring that the goal you set is achievable is crucial here, the next step will help you to determine what is attainable for you.

Assess your current spending

Determining how much you can realistically save is much easier once you have assessed your current spending habits. 

You could do this by reviewing your bank statements for the past couple of months, or by keeping a close track of your spending for the next few months. This will give you an accurate idea of how much you’re currently spending.

Once you have an idea of how much you’re spending, it is now time to categorise. This will be personal to you, but some categories could include bills, food and socialising. You can look at whether you think you are spending too much in certain areas and whether savings could be made. For example, do you have unused subscriptions or memberships that could be cancelled? Or maybe you could switch phone tariffs to get a better rate.

Open a dedicated savings account

Now that you know how much you are wanting to save and you have your goal in mind, it is time to open a dedicated savings account. Doing this rather than keeping all your money together in a current account will help provide better clarity on how much you’re saving and makes it less tempting to spend the money.

Have a look into different saving account options to assess which one is going to work best for you and how you intend to save.

If you aren’t used to saving, it could be handy to set up a direct debit from your current account to your savings to automate the process and ensure you don’t forget. 

Reassess regularly

Once you have been saving for several months, you should review your budget and savings goal to see if you are on track and if anything needs to change. For example, if your goal was to save £300 every month but each month you are falling £50 short, change your goal accordingly. 

Doing this will help keep you motivated and means your goal aligns with your current financial situation.