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How much money do you have in your savings account? Do you even have a savings account? If not, it's never too late to get started. If saving money doesn't sound particularly fun or even necessary, let's take a look at some incentives and reasons why you should. Then we will provide you with a simple tip to help you save towards that goal such as self improvement.
Losing your job
Whether you’re self-employed or have been with the same company for years, you never know what is going to happen. Experts believe that almost half of people don’t have enough money saved to last longer than a month if they were to lose their job. It’s recommended that you should have the equivalent to between three and six months of money saved, in case your career takes an unexpected hit. An easy way to save this amount of money is by using an app like Revolut to round up everything you spend and put that money in a dedicated account. Alternatively, you can save all the coin change you have and only spend notes. This is a great way to force yourself to save without making any particularly drastic life changes.
Buying a house
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Buying real estate is most likely the biggest financial transaction you will make in your entire life. Out of all the homeowners in the UK, around 68% have mortgages or loans that they pay off in monthly instalments. Getting a mortgage typically requires a downpayment or deposit of around 20% of the total value of the property. It’s never too soon for people to start saving for mortgages, with many putting a bit away as young as their early 20s. The best way to start saving is to first compare different mortgages and to evaluate terms, rates, and other conditions on a comparison site like Trussle. This will help you understand how much you need to save to buy a property in your preferred location. Sites like these will help you to assess the rate types, the fees associated and the true costs of different providers' mortgages. When saving for a mortgage, you should be taking your gross monthly income and setting aside at least 20% for your property-buying fund.
DIY projects
There are two kinds of DIY- the type you do because you want to and the type you do because you have to. DIY can take the form of home improvements, aesthetic upgrades, and redecoration. It can also be things like fixing broken roofs, getting double glazing, dealing with burst pipes and water damage, or something equally as important. Either way, you should be ensuring you have some cash put to one side to carry out both essential and non-essential home maintenance. Remember, those home improvements can also add value to your home so, if you are thinking of selling, this is also an investment.
Health expenses
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While we are lucky to have the NHS, being sick or having health issues can still result in expenses. Some kinds of treatment are not covered by the government, others require expensive complementary therapies and equipment. That's not forgetting the cost of dental work, repeat prescriptions, or time off work. It’s always best to be prepared and to put some cash away to help weather any storms. A good way to save for these types of issues is to cut out something you don’t need. That coffee from an expensive cafe every morning, cigarettes, another pair of shoes etc. Find something that you buy regularly that you can live without and save the money instead.
You never know what kind of curveball life is going to throw you, so it's always best to be prepared. Also, saving just a little regularly can make a big difference in your life both now and in the future.
