It’s a good idea to have a goal in mind when you start saving. This could be short-term, like saving for a car or a holiday, or long-term, like university fees or retirement.
To work out how much you can afford to save each month, start by taking a look at what you’re currently spending. You can then look at ways to cut down your budget. (You can get more budgeting tips in our guide to managing your money).
What type of savings account you choose will depend on your goals. Generally, the longer you’re prepared to lock your money away, the more interest you can get. However, you might have to pay a penalty if you withdraw from a long-term savings account at short notice, so it’s worth considering how much flexibility you need.