Duncan Fortune, Head of Commercial at Tesco Bank, comments: “Having a savings mindset can transform the way you think about and manage your money. Not only can it help you achieve your financial goals, but it can also give you greater peace of mind, build your financial confidence, and encourage more mindful spending habits.
“Everyone’s approach to saving will be different, so it’s important to find a way that works for you and your lifestyle. Whether that’s putting aside small amounts regularly or saving lump sums when you can, there’s plenty of savings tactics to try that can help you become a savvy saver over time.”
Duncan Fortune shares his top tips on how to become a savvy saver.
1. Set your savings goals
According to Tesco Bank research, 66% of Brits have earmarked their savings for something specific, such as holidays, property, celebrations, or a new car. Having a dedicated pot for something you have your eye on can help you reach your goals faster. It helps track how far away you are from your target and also ringfences that money so you’re not spending it on anything else. Your savings goals don’t have to be as significant as a house deposit either – it could be for something in the short-term like a new pair of shoes or a big day out.
2. Stick to a budget
If you don’t have one already, think about how to make budget tracking work for you. Do you want to have a weekly limit, or a monthly one? Would you want to allocate a certain amount for different uses, like eating out or shopping? This will help you figure out where your money is going, and whether you need to make any changes to cut costs and make some savings instead.
3.Pay yourself first
It’s easy to assume that you’ll top up your savings with what’s left at the end of the month, but consider flipping this around and paying yourself first instead. When money comes into your account, treat your savings like any other bill and set aside money just as you would for rent, your mortgage, or other regular outgoings. You can split these savings into different pots or accounts depending on what you’re working towards.
4. Don’t give in to FOMO
One in five (20%) people feel pressure to spend money to keep up with their friends’ or family’s lifestyles. Saving up for what you really want and having a clear plan on how much you need and how long it might take will help you reach your goals faster. This should equally make you feel all the more proud to have stuck to your goals and not unnecessarily dipped into budgets just to “keep up” with others.
5. Keep an eye on spending
While it’s good to treat yourself now and again, impulse spending can easily eat into your budget and get in the way of your longer-term financial goals. With 18% of adults admitting to doom-spending – a trend where people use shopping to alleviate feelings of stress, anxiety or uncertainty – pausing before making a purchase is more important than ever. If you’re tempted to buy something, save a screenshot of it and come back to it in a week or so’s time. If you still feel it’s something you need, you can make the purchase with confidence, knowing it wasn’t a spur-of-the-moment purchase.
