Saving money can be really tough, but it can have a surprising boost to your financial security and well-being.
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Saving money might seem tough, especially if you’re already managing tight finances. But putting aside even a small amount each month can have a huge impact.
This is especially true for families with lower incomes, even if you sometimes don’t feel like it’s possible at first. Around 25% of the UK population – 9 million people – have no savings at all.
The benefits of saving small amounts
Saving regularly, even if it’s only a few pounds each month, is not just about saving money. It can greatly improve your mental well-being.
When you save, you’re not just building up your bank balance; you’re also gaining peace of mind.
Academics at Bristol University found that people who save on a regular basis feel less stressed about money and more satisfied with their lives overall.
I guess it’s knowing in the back of your mind that you could handle unexpected costs with a small savings cushion. This reduction in stress can lead to:
- Better sleep
- Increased happiness
- A stronger sense of control over your life
It’s the habit of saving, not necessarily the amount saved, that brings the benefits – which is why even a quid here and there could do the trick.
Impact on low-income families
The benefits of saving are even bigger for low-income families. Regular savers with lower incomes often report similar levels of life fulfilment to those with higher incomes who don’t save. It’s also been shown in studies that having less disposable income can actually make you happier than having more.
Regular savers are less likely to need to borrow money at high interest rates, which reduces financial stress.
Practical tips for starting to save
Starting to save might be easier than you think. Try this:
- Set small goals: start with a manageable goal, like saving even 1p, or £1 or £5 or £10 a month. Once you get used to it, you can gradually increase this amount.
- Use automatic transfers: set up an automatic transfer to your savings account each month. This way, the money is saved before you even notice it’s gone or automate it even further with an app that can do it all for you.
- Join payroll savings schemes: if your employer offers a payroll savings scheme, join it. These schemes make saving easy by deducting a portion of your salary directly into your savings, so it won’t feel like you’re missing it.
Saving money, even in small amounts, can massively boost your well-being and financial security, especially for low-income families. Start small, stay consistent, watch your savings grow, and improve your life.
Ricky Willis is the original Skint Dad. A money-making enthusiast, father, and husband to Naomi. He is always looking for unique ways to earn a little extra.
