Saving money is a really important part of adult life. Whether you’re saving for a property, or simply putting money away for retirement, there are a variety of different accounts and methods you can use to help save. However, keeping your savings in check is actually the most difficult part. Sometimes, unexpected bills and expenses can crop up, leaving you short or possibly unable to pay any other bills you might have had that month. But dipping into any savings isn’t necessarily the best option (although using money that is already there is possibly the safest thing to do.) This is because, once the money has been taken out of the account, you may then feel that it is okay to take more money out of your savings, potentially leading to a huge deduction. There are various other ways of paying off unexpected bills in order to keep your savings in check. Using a credit card or searching for different payday loans through sites such as The Lenders List, provided you can pay it off in time, are some ways to ensure you can pay off your bills but stop yourself from continuously dipping into your savings.
There are various ways you can save money, across a variety of bank accounts. If you’re looking to buy a property and apply for a mortgage then the Help To Buy ISA is possibly the best way to begin. If you’re simply looking to put some money away for the future, then savings accounts are a good option. Putting a small percentage of your money away every month out of your pay check is the first step. As you begin to earn more, or your bills reduce, or you simply learn how to live without the extra money, you can increase your percentage so you’re putting away more money every month.
Avoid Easy Access
If you know that you’re relatively self-sabotaging and you believe that you will continue to dip into your savings, then it’s best to avoid easy access, by opening an account that can lock the money away for a certain amount of time, such as a fixed rate bond. Sometimes the best way to save and to keep your savings in check is through automation. If you have a direct debit that goes into your savings account on the day you get paid, you may not even notice or miss the money that has gone into your savings. Also, not getting an ATM card or signing up for Internet account access are both ways of helping to reduce the chance of withdrawing money from the account and keeping your savings in check.
Managing Cash Flow
Managing your bills is another good way to keep your savings in check and managing your cash flow. Dipping into your savings on a regular basis can mean that there is an issue with your cash flow and management of your disposable income. Keeping your savings in check means that you need to stop dipping into them. If there are too many bills falling in one month, or they are scheduled to come out here, there and everywhere, it’s important to look at what can be changed. Cutting your spending to help balance your cash flow is another good way to keep your savings in check. If you’re prone to spending all of your disposable income and then going further by dipping into your savings, then something needs to be done. Whether that is to cut down your bills, such as cancelling Netflix or making pack lunches every day instead of buying them, then that will help you to ensure that you don’t touch your savings.
Protecting Your Savings
In light of the 2008 recession, the country has seen many banks go bust, leaving many people worried about their savings. It is important to make sure your hard-earned cash is put away in an account with a bank or building society that is UK regulated. This means that it will be protected under the Financial Services Compensation Scheme (2001). This scheme protects up to £85,000 of savings for each individual in the event that their bank, building society or credit union was to fail. The best way to take advantage of this, especially if you have over £85,000 in savings, is to spread your savings around different banks. This way you can also take advantage of different interest rates. However, it is important to look at banks that share authorisations, as they will not be valid if they were both to go bust. For example, Bank of Scotland shares its licence with Halifax, Saga, the AA and more. Protecting your savings is a good way to ensure that your savings will not be harmed in an event that is out of your control. If you’re looking for even greater protection for your savings in order to keep them in check, there is the National Savings & Investments which is backed by the Government making your savings 100% secure.