If you’re able to save, it’s a good idea to create an emergency fund to cover you for periods where you may have no income. Remember to cover costs such as :
A savings fund that can keep you going means you’re secure during a rough patch – it covers you should you lose your job or if you need to make an emergency purchase.
Planning your budget can help you to see how much money you have left after paying for your essential outgoings – then you can decide how much of that you want to save. Work out your spending with our budget planner.
This depends on your savings goals. Are you saving for something in the short term or are you looking for security when you retire? If you’re unsure or want help to assess the options, it's best to speak to a financial advisor.
Once you have a goal, you can work out whether you want to save for the short, medium or long term.
If you want to put some money away for a short while, but think you might need to dip into it from time to time, try looking at instant-access savings accounts. Instant-access accounts allow you to withdraw money at any time without paying a penalty or losing interest.
You can put money in savings that require a longer commitment, such as a fixed-term or limited access savings account or bonds. In return for locking your money away, you’re likely to get higher rates of interest, but you may have to pay a penalty if you want to withdraw money during the term.
Saving for the long term can also be bolstered by investments like bonds or shares. If you can commit to an investment for at least 6-10 years and understand the risks involved (that you may lose some or all of your money) investments have the potential for both capital growth and residual interest.