image

Top tips for savings success in 2020

It’s that time of year again when we’re thinking about getting our finances in order and making resolutions to help us achieve our savings goals.

So read on for some easy-to-follow tips to help you change your spending habits and boost your savings.

1. Check where your savings are currently being held – they may be earning no interest

A good place to start in the New Year is to check where your current savings are being held. Interest rates may be near all-time lows, but the worst thing you can do is earn nothing at all.

2. Think about what you’re saving for, to help you find the right savings product 

It’s definitely worth investing some time looking around for the right savings product for your goals. Are you saving for a short term goal? In which case you might require instant access, or are you happy putting money away for a few years for a more competitive rate?

3. Start a budgeting regime to divvy up your income

The 50/30/20 regime allocates 50% of your income towards necessities, such as housing, transport, food and bills, 30% on wants, such as dining out and shopping for luxuries and the remaining 20% towards savings.

This rule is a good starting point for changing your spending habits but if you’re on a low income, spending half on necessities might not be achievable. You can of course adjust the rule to something more tailored to you. Overall, being disciplined is key.  While it may seem challenging at first, you’ll start reaping the rewards of a much bigger savings pot sooner than you think.

4. Don’t let monthly standing orders drain your savings potential

Car insurance and gym memberships are two types of payments which are often cheaper if you pay yearly, instead of monthly. What’s more, there may be cheaper rates up for grabs at quieter times of the year so it’s worth digging around. While you’ll need a lump sum to pay in one chunk, you’ll save money in the long-run.

5. Check bank statements carefully and regularly for unnecessary direct debits

It’s very easy to sign up for automated payments such as gym membership or online editorials and forget you ever subscribed. These drip feeds of cash can add up to significant sums over time. The key here is to check your bank statements regularly to remind yourself what you’re paying for and whether these regular payments are worth the expense.

6. Use comparison websites to shop around for the best deals

Online tools, such as money comparison websites, can help you discover the very best deals out there for services like electricity, internet or your mobile phone. They’ve also upped the competition between providers which has helped drive down prices for customers.

7. Do you need it? Or do you want it?

We all deserve a splurge now and then, but constantly spending on regular treats may be sabotaging your savings efforts. Small, habitual changes over time, such as making your own coffee or lunch a few days a week could mean more pennies in the pot for, let’s say, that long dreamed of holiday in the Caribbean.

8. Use a savings tracker to help stay motivated 

As well as making these individual changes, finding a tool to keep track of your savings progress can help to keep you motivated. With Aldermore’s Personal Savings accounts, you can set up individual savings targets in your online account, based on how much you want to save and by when. You’ll be able to see how much you need to save monthly to make sure you smash your end goal. Or alternatively you can say how much you can afford to put away monthly, and it’ll tell you when you’ll be getting on that plane to Barbados!

Remember, small changes to daily or monthly habits and shopping around a bit more for the best deals can make big changes to your savings targets – whatever they may be for.

Disclaimer
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to the accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
ADVERTORIAL

Leave a Comment!

Not a member?

You need to be a member to interact with Silversurfers. Joining is free and simple to do. Click the button below to join today!

Click here if you have forgotten your password

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!