If you want to be the king or queen of saving, you should start with manageable goals. £250 is a good place to start if you want to build your savings cushion into something bigger at a later date. If you have never saved £500 or you want to save this amount today, this is the perfect guide for you to read. There has never been a better time to start saving. The Guardian reported that the savings ratio of the UK fell to 3.3%, which is the lowest it has ever been since 1963 when records for savings began. Take a look at these top strategies on how you can save £250.
1. Save the first £100
The Money Advisory Service did research that found that more than 16 million Brits have less than £100 in savings. This eye-popping research has highlighted the dire savings situation of the UK. Despite the many things happening in current affairs, British people are not saving enough money. To have less than £100 in savings means many Brits are in spending mode, instead of saving. The research found that Yorkshire, the West Midlands, the North East and Northern Ireland were the main hotspots for savings under £100. It is clear from this research that we need to create a culture of saving again.
When you are trying to save the first £100, you need to divide the number into chunks of £25. Depending on your salary, putting the first £25 that you have should be straightforward. £25 can be costs of a piece of clothing or 2 cinema tickets with friends. You simply need to give this up. By decreasing your frequency of going out or eating out, you could save £25. Eating out is expensive whether you love fine dining or take away food. By cooking food at home, you will be able to find £10 notes that you have saved to eventually get to £25 saved.
Do this twice so that you can get £50 put away and deposit it into your savings account. For the next £50, try and think of some extra work that you can do. If you have illustration skills or you are a graphic designer, create a logo for an entrepreneur and ask for a payment that is worth more than £50 or more. This way you can take £50 off the work and you will then have £100 that you have saved.
Through a mixture of cutting expenses and earning extra money, you can see how you can save £100. Your first £100 can be saved within a month depending on your salary and how aggressive you are about decreasing your expenses. Once you have saved this amount, put it in a savings account that you do not have a debit card. If you are trying to save money, a debit card linked to your savings account might make you want to withdraw the money. By having a savings account that you only access in the branch, this will decrease the temptation to spend the £100 when you have saved it.
2. Start a weekend business or find a part-time job
Having a £100 in the bank is a good start – now it is time to get the next £150. Get creative if you want to reach the target to save £250. A business that you operate on the weekend is an excellent way to generate cash for your savings. The types of businesses that suit being done on the weekend include a food catering business, graphic design or selling products at market stalls, or creating a weekend pop-up shop. Weekend business can be profitable if you keep your costs low and focus on your financial goals. The weekend business you do should not interfere with your job and it should be something that doesn’t take you a long time to get paid.
A part-time job is another avenue to generate the next £100. You could see if you can do your part-time job on the weekend or at night. If you have a part-time job, don’t tire yourself out trying to reach the target and make sure that you are paid frequently such as every two weeks so you can get the cash in your savings account.
3. Learn everything you can about bank savings accounts
Savings accounts at your local bank will help you to protect the amount that you have. It is important to conserve the capital that you have already if you are super focused on saving £250. Different banks and building societies will have different interest rates and accounts. Some banks have 95 day fixed term accounts where you can put your money in for essentially three months. This is ideal if you are someone who wants to keep the money safe so that you don’t spend it immediately.
Saving account rates depend on many things such as current affairs, consumer confidence and how the economy is doing. If you notice that savings rates are increasing, take advantage of this and start depositing your savings into accounts so that you can earn interest. The longer you keep the money in a savings account with interest, the more money you will have at the end of the day.
4. Every time you save money, note it down
Another excellent idea if you are trying to save £250 is that you should write down whenever you save an amount, log it down. It does not help to save money and then immediately withdraw the money. Create a spreadsheet and store it in the cloud that shows all of the money that you are saving so that you can reach your £250 target within the timeframe of six months.
5. Should you treat yourself if you reach the target?
This is the question that everyone who is saving wants to know. When do you know that you should keep saving money or treat yourself to something fun because you hit the target? It’s possible to do something like this – when you hit the £250 target for saving, you could take yourself to your favourite restaurant or go to your favourite football match. It is better to have an experience instead of buying something physical because you will feel the reward of your hard work more. Not everyone is the same though so not everyone needs to have a treat in order to feel like they are saving properly.
With these tips, you should be able to save £250 in six months if you stay focused on ensuring that you save the money that you need. Are you ready to save more money? Continue to use these tips regularly so you can grow your money.