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Why saving is important

Saving money is a great financial habit to get into.

It can help you become more financially secure, and provide for you and your loved ones if an unexpected cost pops up.

Saving money can also help you reach your short, medium and long term financial goals - such as saving for a car, a house deposit or your retirement.

Saving money can feel challenging, but there are things you can do to save money each month, such as:

  • Planning your meals and cooking in batches to save money on food shopping
  • Using price comparison websites to see if you can reduce your bills
  • Turning down the heating or turn off appliances when not in use

5 ways to get saving

  1. Create a budget

    Creating a budget can help you see where you may be able to make changes to your spending to save more.

    Explore: How to create a budget

  2. Keep savings separate from regular income.
    Opening a savings account can give you somewhere to keep your savings, and add to it when possible. Separating the money from your everyday banking account can help remove the temptation to spend it.
  3. Track your spending
    Use a personal finance or banking app to monitor and track your spending. Frequent, small purchases soon add up, and you may spot areas to cut back on spending and save more.
  4. Save little and often
    Saving any amount of money, however small, can help you get into the habit of saving. Setting up a standing order from your main bank account into a savings account, for the same day each month, means the money is moved automatically so you don't need to think about it. You could choose the day you're paid, so you're not tempted to spend the money you're planning to save.
  5. Compare and save
    Use comparison sites to check if you could be paying less for your household expenses, like utilities, phone, internet or groceries. If you switch to a cheaper deal, try putting the amount you’ve saved each month into your savings account.
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What next?

You might also be interested in

There are different types of savings accounts, and choosing the right one will depend on what you're saving for, or the specific savings goal you want to achieve.
If you're not sure when to prioritise saving money over repaying any debts you may have, read our tips to help.
Save or invest? This guide can help you work out the best way to grow and protect your wealth.

Disclaimer

Please remember that the value of investments, and any income received from them, can fall as well as rise, is not guaranteed and you may not get back the amount you invested. This could also happen as a result of changes in currency exchange rates, particularly where overseas securities are held or where investments are converted from one currency to another. We always recommend that any investments held should be viewed as a medium to long-term investment, at least five years.