How to get into a savings habit

The crisis in the Middle East has prompted many Brits to put more money into savings, so should you be doing the same? And if so, how?

According to Barclays, nearly three-quarters (74%) think the US-Israel war with Iran will affect the cost of living this year.

As a result, many are aiming to make sure they’re in a strong position to cope if the cost of essentials like food and energy go up.

For example, one in seven - 14% - are building up a savings buffer.

But if money is tight right now, where do you even begin?

Six ways to start saving

When everything seems so expensive, saving money might seem difficult or unrealistic right now.

But there’s no hard and fast rule that says you have to put huge sums of cash aside every month.

Moving even just a few pounds into a savings account here and there could make a big difference in the long run.

1. Start small

Don’t give yourself a mountain to climb straight away.

Even £1 a day adds up to £30 a month and can help you get into good habits. 

2. Automate your saving

Set up a standing order so a small amount gets moved into savings after you’re paid.

By making it automatic, you won’t even have to think about it.

3. Set a budget and stick to it

Make sure you know how much money you have coming in and where it’s going, so you can see what you have left over that you could afford to save.

Check out our guide to creating a budget to get started.

4. Set goals

Give yourself clear targets and track your progress.

If you feel you’re achieving something, it’s easier to stay motivated and keep taking positive steps.

5. Look for the best savings account

Savings accounts usually offer better interest rates.

So if you have your money in a current account, see if there are other options that might offer better returns.

6. Make small behavioural changes

The Middle East crisis and its consequences might be beyond our control.

But we can make small tweaks in our daily life that add up to big savings, such as switching to own-brand food, cancelling unused subscriptions and sticking to a shopping list.

Check out our list of 50 simple things you can do today to start saving money.

Build a separate emergency fund

Unexpected expenses like a broken boiler, a car repair or an emergency trip to the dentist are rarely cheap.

So you need to make sure you can cope with these sudden shocks without it derailing your wider financial plans.

You can do that by building an emergency fund that’s completely separate from your savings.

A good goal is to have enough saved to cover around three months of your living costs - things like rent, bills, food and transport. 

Again, you just need to start small when you’re building this pot of money.

Even if you only put aside £1 a week, it’s better than nothing. 

Check out our tips on how to build up a rainy-day fund to help you get started.

What if I can’t afford to put money aside?

If you’re already feeling stretched to the limit, then putting money into savings might not feel like an option. 
 
But help is out there. 
 
We’re here to listen to you without judgement, understand you and improve your financial wellbeing, whether that’s through:

• helping you budget
• letting you know what benefits you’re entitled to
• recommending debt solutions