LOQBOX Learn: Top tips to help you start saving
Whether it’s a boiler breakdown or a family emergency, savings can cushion the blow of that unexpected bill. Building a savings pot is an important step to healthy finances – even, or perhaps especially, during the uncertainty of coronavirus. If you can save, you should. Follow our tips to get started
1. Set yourself a goal
Give yourself the focus of a realistic savings goal and you’ll be surprised what you can achieve. Write down your goal and think about how much you could realistically save each week or month to get there.
2. Start small
Small savings soon add up. What daily or weekly savings could you make over, let’s say, the next 40 weeks? You’ve probably already bagged some savings from simply being in lockdown. For example, with the coffee shops closed, you’ve already cut out your daily coffee saving around £2.50 every day. That’s £700 over 40 weeks! Here are some ideas.
- Saving 60p a day (e.g. a chocolate bar) would give you £168 after 40 weeks
- Saving £2.00 a day (e.g. a bottle of beer) would make that £560
- Saving £30 a week (e.g. a takeaway) would make you £1,200 better off
Spending just £1 less every day would save you £280 over 10 months. That’s £3,650 over 10 years (£3,653 with leap years)!
3. Keep your savings separate
By leaving savings in your current account, it can be tempting to spend the money. Try keeping your savings in a separate account or even using LOQBOX, the digital piggy bank.
4. Pay in regularly
The best way to build your nest egg is by creating a savings habit, so try to get used to making regular payments. It’s often easiest to set aside your savings straight after payday to remove the temptation to spend.
5. Set aside something to fall back on
It’s good practice to put aside some money in case of an emergency. As a general rule of thumb, you should have enough to cover essential outgoings for three months. For example, if your rent, utility bills, and council tax came to £1,000, you should look to have £3,000 to fall back on. This may seem pretty daunting but we all need to start somewhere.
Kick start your savings with LOQBOX
- Set yourself a savings goal
- Build a savings habit by starting with as little as £20 a month
- Make these savings work harder by boosting your credit score
- Grow a savings pot
This post was written and compiled by the credit experts behind LOQBOX – a completely free way to build your credit history by saving as little as £20 each month. To sign up or read more about the clever way LOQBOX works, head to LOQBOX.com.