on your savings journey
How to get started on your savings journey
Starting your savings journey can be overwhelming, but with the right approach, it becomes manageable. Here are some tips to help you get started.
Take time to evaluate your finances
Think about what money you have coming in and what you spend.
First, understand your financial situation. What money do you have coming in, and where is it going? Determine how much you need to live on each week or month. After accounting for essential expenses, the next step is to set a budget.
Creating a budget provides a clear picture of your finances, helping you keep track of your income and outgoings. It also encourages you to differentiate between needs and wants—like that daily coffee on your way to work!
How do I start budgeting?
1. Identify Your Spending:
Calculate what you spend on:
- Household bills: Mortgage/rent, utilities.
- Living costs: Food, clothing.
- Travel: Public transport, car expenses (fuel, maintenance).
- Leisure: Holidays, gym fees, dining out, entertainment.
2. Review Your Outgoings:
Check if you’re spending more than you earn. Regularly review your budget to find potential savings. Small changes, like taking showers instead of baths or preparing meals at home, can add up. Consider keeping a spending diary to track your expenses.
Top Tip: Pay off any debts before you start saving—this will put you in a stronger financial position.
By budgeting, you’ll establish good financial habits, making it easier to pay your bills and gain control over your finances. This will also allow you to start saving for exciting goals, like a deposit for a new home or a dream holiday.
Set your savings goals
You’re more likely to achieve your savings goals if you set yourself targets.
To increase your chances of success, set realistic and specific savings targets. For example, aim to save £5,000 by next year for a car.
Stay motivated by keeping visual reminders of your goals—perhaps a picture of your dream holiday destination on your phone or fridge. Track your progress and celebrate milestones along the way.
Top Tip: Build an emergency fund alongside your savings to cover any unexpected bills.
Savings Tips
Sell Unused Items: Declutter and make money by selling things you no longer need—try car boot sales, social media, or online auctions.
Shop Around: Compare deals on everything from mobile phone contracts to your weekly groceries to save money.
Save Your Change: Regularly putting loose change into a jar can help your savings grow over time.
By saving the money you make from selling things or the loose change you find, you’ll watch your savings build up quickly!
Top Tip: At The Loughborough Building Society, our passbooks let you physically see your savings grow—a satisfying way to track your progress.
What do I do now?
Start saving today and open a savings account. Finding the right account may be confusing, but we are here to help.
Talk to us today!
Visit your nearest Loughborough Building Society branch or agency or call us on 01509 631960.
For an up-to-date list of our savings accounts please visit https://www.theloughborough.co.uk/all-savings
Additional Resources
- Use the FCA Savings Calculator
Curious about how much interest you could earn? Try the FCA’s handy calculator to see the potential growth of your savings. https://www.theloughborough.co.uk/support-centre/savings-support/fca-savings-calculator
