Last Updated on 19 November 2022
If you’re yet to start saving money, don’t worry, you’re certainly not alone. Today, one in five Brits have no savings at all. In tough economic times it can be more difficult to get into a position where you can save money, however, this is all the more reason to save money regularly.
The road to setting up a savings pot starts with a few basic pointers which, if you haven’t done yet, could unlock more money from your monthly paycheque. In this article, we’ll lay out the four key steps to start building your savings from square one, so you can begin thinking about that all important nest egg that’s going to help you down the line.
Step one: clear your costly debts
Before you start saving, you need to prioritise getting rid of the money you already owe – particularly the debts that are costing you the most money. Easier said than done, for sure, but say you have debt on a credit card with a high interest rate, it’s better to act quickly to remove the strain of the additional charges now rather than later.
This can be done via whatever savings you already have or by utilising a lower interest rate personal loan to shift your debt focus from high interest to lower interest creditors. You might not be able to pay all your debts off, but you should be able to break your repayments down into more manageable monthly chunks at the very least.
Just make sure if you do take another loan that you have the means to pay it back on time as per your agreement.
Step two: start tracking your finances
We’ve all read the saving clichés about cutting out the morning Starbucks or whatever other ‘unnecessary’ regular spends you may be making, but the only way you’re really going to know whether you’re spending sensibly or otherwise is to track…
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