Find out the benefits of saving money, why it is so important, and how you can easily get started saving straight from your monthly pay.
We are all told from an early age that saving money is important. But what are the actual benefits of saving money? This article discusses why saving money is important, what it can help you to do (and avoid), and how you can get started with saving regularly.
Why should I start saving money?
First of all, having savings to fall back on is crucial for when the unexpected happens. Whether it is losing your job, splitting up with your partner, or unexpected health issues, your savings can help you to get yourself back on your feet.
Therefore, it is important to build an emergency fund for when these things occur. By putting away a small amount every month, you can build your financial resilience and be confident in your ability to bounce back from unexpected expenses.
Having savings for when these difficult moments arise can also help you to avoid the trap of high-interest credit such as payday lenders, which often charge extreme interest rates and can stay on your credit report for up to six years.
Secondly, saving money can help you to reach your future goals. Common financial goals include saving for a house deposit, buying your first car, preparing for your children’s financial future, paying off debt early, or saving for your retirement.
The earlier you start saving for these goals, the sooner you will reach them and the more prepared you will be. It can also be extremely satisfying when you reach these goals, knowing the hard work you have put in over time has paid off.
There are so many benefits of saving money. Let’s discuss how you can get started and some tips to save more money over time.
How can I start to save money?
The first step to saving is understanding how much money you have to save every month. The best way to do this is to create a budget plan.
The key steps to creating a successful budget plan are as follows:
- Find out how much you earn each month.
- Calculate how much you spend each month based on categories such as bills, entertainment etc.
- Calculate how much of your income is remaining after spending. This is how much you have to save.
- Highlight spending categories where you could cut down and save more each month.
- Set yourself some savings goals.
Once you have set your savings goals, you will need to decide how long you have to save for each goal. We have a savings calculator tool on our website which outlines how much you will have saved over time based on how much you are currently saving per month.
How Serve and Protect can help
Now you have an idea of how much you can save per month and your savings goals, you can start saving into separate accounts to reduce the temptation of dipping into your savings.
At Serve and Protect, we offer a range of easy-access savings accounts to meet your needs:
- Regular Saver – helps you to get into a savings habit with savings deductions straight from your pay.
- Flexi Saver – allows you to deposit lump sums up a maximum balance of £40,000, with the option to withdraw at any time.
- Junior Saver – allows you to save on behalf of your children or grandchildren to prepare for their financial future.
- PrizeSaver – gives you the chance to win monthly prizes of up to £5,000.
If you work in the Police, Prison & Probation, Armed Forces, Fire & Rescue, or Health & Social Care sectors in the UK, you can join Serve and Protect and start saving straight from your pay.
Saving with the credit union also helps your colleagues to access affordable credit if they need to borrow. At the end of the financial year, we reinvest our profit into the credit union and our members, as well as good causes close to our members’ hearts.
Start saving today!
The hardest thing about saving money is getting started. We make it easy with the ability to save straight from your pay, helping you to reach your savings goals without the stress.
Start saving with our easy access accounts.