Getting into the saving habit

Budgeting, for some it can be a scary word, many people approach budgets with fear, especially if they don’t have much experience with them. But budgeting does not mean you will have to start scrimping and saving and living a “minimalist life style”, it just means understanding your finances and having control over them. By simply starting to live within your means.

If you said to yourself “I’m going to save £3.00 a day” (and see it through) the money would soon add up. In a year you would find that you have saved, £1,095.00 and if you really think about it £3.00 could be a cup of coffee or a sandwich. By changing your mind set and the way you spend, you could have saved enough for a holiday! It is important to remember, when start a savings pot for the first time, is not to expect to see big savings over night, you need to have something in mind that you want. By making this change, you will find that you will feel more financially stable. You only need to do something every day for a month for it to become a habit. We believe that Saving should be exactly that, a habit. 

Now we know what you’re thinking, I can’t make the daily commute without picking up my morning coffee and if we are honest, we couldn’t either! But this is a prime example of an everyday savings and investment scenario. For example, if you invested in a travel mug and let’s say it cost you £12.00, and started making your own cup of coffee to take to work with you in just four days you would have paid for the mug. Let’s say you spent £10.00 on all the coffee and sweetener you need, it could take you around a week to cover the investment, but you will find your savings soon add up in the long run. However, if you buy the travel mug and the ingredients to make your coffee, but after a couple of days you go back to buying that coffee, then you will be out of pocket!

Now we know this is a simple comparison, but we believe it really does highlight the idea of savings and investments. You have to put a little in and commit some time, but if done right it soon pays off and before long you will find this small change in habit is leaving you financially better off. 

Now if you start to apply this philosophy, to your everyday living. You could find there is more ways for you to save money. Sitting down with one of our financial advisers could help you find the best ways to make your investments work for you.