Step 2: How to save without the sacrifice
While saving is the key to reaching your goals, it doesn’t always have to be a sacrifice. You can have your cake and eat it too… you just need to know the tips and tricks along the way.
Pay yourself first
One of the best saving hacks is to pay yourself first. The habit here is more important than the actual amount saved. Through setting aside your savings first after payday, it will stop you from saying “I’ll save what I have at the end of the month”, which we all know will probably end up being a smaller amount than it could be. A great way to think about it is setting your savings up like a bill. Try creating a recurring direct debit that pays you by going straight into your chosen savings pots. With Moneybox, you can do this through our weekly deposits or payday boost!
Round up & save on your everyday purchases
We understand that spending is part of everyday life, whether it’s on essentials or doing the things that make us happy. Each day you’re likely to make a transaction on your bank card – in fact, 1.6 billion transactions were made by UK cardholders on debit cards in January 2020 alone. So why not save the spare change from your everyday purchases? By linking your bank account to the Moneybox app, you can round up your purchases to the nearest pound and set aside the spare change. So, when you spend £2.40 on your morning coffee, the 60p change is saved or invested into your chosen account. You’ll be amazed to see how quickly this adds up – the average Moneybox user saves £500 per year in round ups alone! Round ups are a great way to kick-start your savings habit, without you having to lift a finger.
Find your quick wins
One way to make your savings go even further without making sacrifices is to look at your spending breakdown and find the quick wins that could make a difference over time. See any recurring payments or subscriptions you don’t use anymore? Or how about reviewing your household bills to see if you can get a better deal on your energy, insurance or phone contract? Money Saving Expert is your friend here – they have great tips and the latest deals on everything.
Now you know how much you’re able to save each month and you’re ready to pay yourself first, it’s time to make a savings plan that suits your goals. Get money-smart in Step 3 as we break down the savings and investment accounts you need to know and how you can use them to your advantage.