Saving is always a good thing to do, whether it’s for the proverbial rainy day or just towards a more financially free future. But if you not much of your income seems to survive until your next payday, saving can seem like something which is much easier dreamed about than carried out.
Even if you don’t have much to spare, however, it is still useful and even important to save what you can. Even small amounts of savings can build up over time, and perhaps more importantly can help you develop good habits that will serve you well when you can put them into practice more effectively in the future.
Always Save if you Can
If you have any money left from your last paycheque when your next one comes through, put it into a savings account or ISA. Even if you have less than £1 left, transfer it over to your savings and start the new month with your it will help you cultivate the good habit of saving regularly and putting whatever spare money you have in a more profitable savings account. If your spare funds are a bit more ample in the future, then these habits will pay off.
If you want to get the most out of your savings, whether you have a lot or a little, then you need to shop around and consider all your options. Look at a range of banks both big and small to find out which one is offering the best savings rates. When you’ve found the best deal, go for it but don’t stick with it for life. In a year or two, have another look around – as you might when an energy or broadband contract runs out – to see if any other bank has managed to come up with a better offer.
Look at Your Spending
The more you manage to save, the more interest you will get – and the more compound interest you will earn on that interest. If you don’t have an awful lot to put aside but want to make the most of it, this can be a particularly useful fact to bear in mind. In order to find a bit more to put aside each month, it can be useful to look at your spending to see if there are any things you can get cheaper or cut out in order to put that money into savings. This isn’t about living in a permanent state of austerity, just cutting out some unnecessary expenses in favour of putting that money aside.