If you are new to saving, these are just a few rules I think all new savers should get to grips with before they start stashing their cash.
1. Save little and often.
It doesn't matter if you can only put by a small amount each month; getting into the savings habit will set you up for a brighter financial future. Start with an amount you can conveniently save – trust me over the days, weeks and months, it adds up. Don’t try to wait for a huge sum before you save, because really you may never save the huge sum and the huge sum may never come.
2. Save no more than £50,000 with any financial institution.
This is the maximum sum guaranteed by the Financial Services Compensation Scheme (FSCS) per individual, per financial institution. However, it isn't always easy to work out which banks count as a single institution, so make sure you do your homework.
3. Make sure you know how your money is protected.
If you save with a bank that isn't UK-owned, your money may not be protected under the FSCS. For example, savers with ING Direct have their deposits guaranteed by the Dutch compensation scheme, which guarantees up to €100,000 of savers' cash. It is up to each individual to decide where they think their money is safest.
4. Keep your eye on your interest rate.
Often - as is the case with the accounts featured in this article - the market's top savings deals come with temporary promotional bonuses. Therefore, to make sure you always earn a competitive rate on your savings, shop around for a new account at least once a year.
5. Party! Party! Party!
You are probably wondering how partying can help you save money. Well, this is how; due to my line of work, I get invited to all sorts of events. In the last week alone, I have been invited to a naming ceremony, birthday celebration, graduation party just to name a few and I have noticed certain faces at the different celebrations these people are newly resident to the city and I thought to myself...”wow! they don’t have to cook a meal when they get home because they are already fed from the party and most times the hosts has surplus of food which they give to guest to take away so as not to waste”. So not only do you save money but you also get to know your neighbours and network with people around you.
Let me say this however, make sure you balance your partying amidst other things going on in your life, for example, don’t be so carried away with partying that you neglect your studies, career or family goals.
I think that's really worrying at a time when redundancies are on the rise and the economic outlook is so uncertain. Perhaps you are a student and have a loan or your parents/guardians are the ones financing you, you don’t have to spend everything that comes into your hands.
Of course, it's tough to set money aside when your budget already feels stretched - but money saving tips may help you a find few extra pounds each month that could be stashed in a savings account.
No matter how small a sum you can afford to put by every few weeks, once you start saving regularly you'll love the satisfying feeling of building up a cash cushion to fall back on in emergencies.
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