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.
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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Margaret Gallagher says
Little often – soon adds up – there is always a rainy day around the corner
Dion Petrie says
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.
Rachael Sexey says
I put any spare money into my savings account
I haven’t heard of the Chip App before. It sounds like a really great way to facilitate savings and I will definitely check it out!#KCACOLS
Jade Page says
Great tips. We don’t save much at the moment but have a standing order to trasfer £80 per month into our savings. This has really helped us out with things like emergency repairs. #KCACOLS
Yes! It is so important to put something aside for emergencies.
Fiona Cambouropoulos says
There are so many ways to save a little if you take the time to try. A little at a time would be my answer and wise spending. #KCACOLS
That is a wise advice! I am trying this year to focus more on saving 🙂
I have envelopes in my desk for certain things, vacation and such, that I throw a 20 in every once in while when I have extra. Helps make things more affordable when they come up to have already gotten a big head start. I’m also a big believer in saving and turning in spare change. People don’t realize how much that can add up #KCACOLS
That is a good way to save money too 🙂
Claire Rocks says
Thanks for sharing this. 2020 i am focusing on my finances. Im looking to use what we have instead of buying new to save our pennies. #KCACOLS
Yes 2020 will be a year to save more for us too 🙂
Jo (A Rose Tinted World) says
A little of all of these ideas is my favourite way to save! Great post. #KCACOLS
Fantastic! Thank you Jo x
tracey bowden says
I am so bad at saving. I do put moeny into a Christmas savings account but I don’t have any savings for anything else. I really should sort this out #kcacols
I hear you. We need to save more too x
Enda Sheppard says
Credit unions are brill, but the best thing, for us, is having something put away from our pay BEFORE we touch it. Adds up and you don’t miss it becauae it’s like it was never there, if you know what I mean! #KCACOLS
Yes I know what you mean and it is indeed a great idea!
Sarah Arthurwears says
I have to be honest and say I am really very good at saving. I know how it feels to not have very much, to have to be so careful with what you spend and to have to budget carefully to get by – and I don’t think that lesson leaves you when you’ve been there – you understand the value of money and you know the ease in which it can be frittered away. My biggest concerns these days are how to make sure my husband stays on the same path as I do, having had an upbringing where he never had to worry….and how to make sure my own children learn those lessons without having to put them needlessly into a difficult situation. #kcacols
Mummy and the Mexicans (Ruth) says
I struggle to save at the moment but need to make a big effort to plan more, so spend less. I think it’s a good idea to save a certain amount each payday and then you can’t spend it if it’s not there. #kcacols
Crummy Mummy says
January is a long month to get through isn’t it – all sage tips! #KCACOLS
Yes it is sooo long! Thank you 🙂
Wendy Lam-Vechi says
You can see it as living frugally or you can see it as taking care of the environment. If we don’t need it or we already have a similar version of it then we can ask ourselves, do we really need to add another carbon footprint to Earth. If we live more consciously aware of our impact on the environment we live in, I think we will save a lot of money because we will buy less