Staying on track with your savings

1. Set Clear Savings Goals 

Start by defining your savings objectives. Whether it's creating an emergency fund, saving for a deposit on a house, or planning for retirement, having specific goals gives you a sense of purpose and motivates you to save consistently. Break down your goals into manageable milestones and celebrate each achievement as they come to stay encouraged along the way.

2. Create a Realistic Budget

Developing a budget is key to understanding your income, expenses, and potential savings. Track your spending habits to identify areas where you can cut back and allocate those savings to your goals. While it's essential to be disciplined, allow yourself some flexibility for occasional treats or entertainment. It’s important to avoid feeling deprived, as this makes it more likely that you’ll fall off the wagon. Remember, balance is key!

3. Automate Your Savings

Make saving effortless by setting up automatic transfers from your checking account to a dedicated savings account. This method ensures that a portion of your income goes directly towards your savings goals without the temptation to spend it elsewhere. Consider aligning these transfers with your payday to make it a seamless part of your financial routine.

4. Build an Emergency Fund

Life is unpredictable, and unexpected expenses can disrupt your savings plan. Establish an emergency fund with three to six months' worth of living expenses. This safety net will safeguard your savings progress and provide peace of mind during challenging times.

It’s also worth investing in insurance like income protection and critical illness cover, should the worst happen and you are unable to work.

5. Reduce Debt

High-interest debts can drain your finances and hinder your ability to save. Prioritise paying off credit cards and loans to free up more money for saving. Consider consolidating debts or negotiating lower interest rates to accelerate your debt repayment journey.

Check out our article about reducing debt for a more detailed guide to lowering your existing debt.

Download the Mortgage Advice Bureau app

Our app is a digital mortgage coach designed to help you save up, plan, and track your home buying journey – whether you’re buying your first home, or just fancy a move.

We’ll guide you through step by step to ensure you always know what’s coming up next.