No matter how much you plan, occasionally something unexpected will happen. Life is like that. One day, everything is fine, the next your washing machine or car needs to be repaired. When that day comes it is nice to have some cash available to deal with that emergency.
In short, we all need to have savings. Here are some easy ways to put away money for life’s little emergencies and for the things you want to do in the future.
Save Using ISAs
Every person in the UK has the right to invest up to £20,000 per year in an Individual Savings Account (ISA). As you can see from this website, it is a tax-efficient way to save. If you open an instant access account, you can get hold of your cash in an emergency. But, it is also possible to lock your money away for a few years.
Or, if you prefer you can open a stocks and shares ISA. This gives you the chance to decide whether you want your cash to be used to buy shares in an effort to get a better return on your money. This approach has risks.
Regardless, of which approach you are interested in, it makes sense to get some additional advice before investing in an ISA. A good independent financial advisor will help you to decide which approach is right for you.
Save A Little At A Time
When money feels very tight persuading yourself to put aside £20 or more per week could be difficult. The chances are that most weeks you will find a reason not to do so.
If you have tried saving a set amount every week or every month and have failed to do so, the little and often approach may work better. It could be as simple as putting your change into a jar every time you get home. Or, if you mainly pay for things with your card you might want to save little and often using an app.
Chip is compatible with most UK bank accounts. This handy app works out roughly what your outgoings are and determines how much you can safely save. Every few days, it automatically sends an affordable amount of cash to a savings account. Many people find that this way of saving works for them.
In fact, there are lots of apps out there that are designed to help you to save more. You can read more about them by clicking here.
Join A Credit Union
Another interesting approach is to join a credit union. These cooperative financial institutions enable you to save up some money.
They also offer a range of other financial services, which are usually cheaper to use than those offered by most mainstream banks. For example, lower interest rates on mortgages. Paying less for your mortgage and other financial services opens up the chance for you to put some of the money you save into a savings account or pension.
There is also the potential to boost your credit rating. So, potentially you can also borrow for less from other sources, should you need to do so.
Live Frugally
The other way to save more for a rainy day is to spend less. Once again the cash you save can be put into a savings account or invested. A few family bloggers regularly write about ways to spend less. So, you can easily find out how to live frugally but still enjoy life.
How do you save ahead of difficult times?
*Disclosure: This is a paid collaboration.
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Franca 💋
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Little often – soon adds up – there is always a rainy day around the corner
I usually just put the change I have left in my purse into one of those banks that can only open if you use a tin opener
Hello! I find it easy to save when I put money into a savings account on payday.
I put any spare money into my savings account