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Don’t think that you need to have loads of spare cash or loads of spare time and energy to get started with saving. Many of us don’t have a lot of spare money in the bank, even though it’s said we should have at least 3 months worth of wages saved for an emergency, a new report has found that 1 in 4 families have less than £100 in savings.
If this reflects your current situation you don’t need to bury your head in the sand about savings. You can get started, you just need to know what to do. Follow these steps to get your emergency fund started.
Set a goal
If you find saving hard, try setting yourself a goal first. Have a set figure in mind that you want to reach, then once you get there, move the goal again, set a higher figure and keep going. If working with numbers is not going to cut it for you, set something that you want to buy – think big like holidays, cars or houses or you can start small – think birthdays, day-trips or getting a new outfit. Having a goal in mind is going to make saving so much easier because you’ll see the money as having a specific use, rather than just being there as spare cash.
Create a habit
Saving is much easier when you don’t have to think about it. Start getting used to taking a portion of your earnings and putting it straight into a separate savings account as soon as you get paid. The easiest way to do this is to set up a standing order that automatically transfers money on a set date every month. This way you’ll not even have to remember to move money aside, but you will get used to living on a slightly smaller budget whilst your savings grow!
Keep an eye on it
Every so often have a look at your savings to see how they are growing. Seeing your progress is going to give you a great boost and hopefully help to keep you on the right track. It’s also good to check in on your savings so that you can re-evaluate what you’d like to use them for. Maybe you’d just like to keep going as you have been, but you could also split your savings so that you have a separate pot for different things. It might be a good idea to use some for a rainy day fund, some for retirement and some for smaller goals which can be used sooner.