A broken habit
We used to be a nation of savers. Nowadays however, it’s estimated 11.5 million adults across the country have £100 or less in savings*, and half of twenty-somethings having no savings at all**. So, what’s changed?
There’s little doubt the financial crisis affected our attitudes to our money. Rents and house prices have been steadily rising, as well as the cost of living – leaving us less disposable income at the end of the month. Saving has been the last thing on many people’s minds.
We’re on a mission to get people saving again – whatever your goal, age, dreams or who you choose to save with. Because it’s essential you have something to fall back on if the unexpected happens, like (heaven forbid) a surprise flood in your kitchen, an unexpected bill, or broken boiler. As well as being able to reward yourself with a holiday or new car.
PayDay = SaveDay
If you're not in the habit, it's really hard to know where to start with saving. Many of us pay all our bills at the start of the month when we've got money, then save whatever we've got left at the end of the month.
But actually, research has shown that people who save the day they're paid, often have far more success^.
Payday SaveDay: a day a month to put a little bit away – no matter who you bank with or what you're saving for.
Start saving now: the sooner you get into the habit, the better off you’ll be.
Start small and save often: even a small amount can build up over time. According to The Money Advice Service’s website, getting into a regular savings habit is more important than how much you put away.
Manage what you spend: budgeting for your everyday spending can help you figure out how much you need to live on, and how much you can afford to put away. It’ll help you feel more in control and can help you avoid overspending or going into debt.
Make saving automatic: set up a standing order so you don’t need to remember to save every month. That way you won’t have to remember to make the payment and you won’t be tempted to skip a month. See how to set up a standing order.
Change your spending habits: making a few small changes to what you spend can help you save. One coffee less a week or taking lunch into work can soon add up.
Nationwide – the home of savings
Helping people to save has been at the heart of what we do for over 170 years. Designed for every sort of saver, wherever they’re at on their savings journey, see our range of savings accounts and ISAs.
*Money and Pension Service (2018)
**BBC News 5/8/19
^Mintel’s Deposit and Savings Account (June 2018)