Lincolnshire Credit Union Blog

Community news and information

Tips on how to start saving - Part One

Date added - 07 Feb 2020

One of the hardest things is starting to save money especially if you’re living from pay check to pay check. Lincolnshire Credit Union wants to help people start saving money. We know that everyone has a different relationship with money and how we spend or save, so we put together a range of different ways that could help organise and budget your money.

Let’s start with the basics.
These are a range of tips to help budget and organise your spending and saving from month to month.

Make sure your bills are paid first.
Get the most important things out the way; this can be paying bills, loans, buying food or putting aside money for important things like appointments. After paying or putting aside the important amounts, you then know how much it is you have left to play with for the rest of the month.

Plan to save
Once you have paid the important things, you can then put some money into your savings, if you then start counting your savings like it’s a bill you are more likely to put aside the money into your savings. Then trying to add to your savings when you receive it rather than at the end of the month this means you’re more likely to stick to the amount you want and not spending it because it’s there. Set a goal or target to reach by the end of the month or year, by setting a target amount or goal item to save for, having a set goal will help your mind-set of having a purpose of saving, whether this is to save for a rainy day or emergency fund or a holiday.

Track your spending
By simply tracking (writing it in a notebook) and analysing what you are spending your money on can help pick up on what you’re spending your money on that might not be necessary and what areas could be improved upon. Tracking your money can highlight areas in which you can make simple changes to that can reduce your spending and help in the long run.

Starting Small
By starting small you can get into the habit of saving money without having to completely change your spending habits. By simply saving £5 a week it adds up. By putting £5 a week into a savings account that’s £260 a year. By starting with smaller amounts in your savings you’re getting used to changing how you spend and what you spend your money on, when you start organising your finances you will able to start spending less and saving more.

Having savings can help in a number of ways, having it as a fall back in case there is an unexpected expense that you need the money for or having the extra money if you know you’re going to spend more in a month with Christmas or birthdays or other events. Having even a small amount of money to fall back on can help you feel a little more financially secure.