Chris Irwin from Yorkshire Building Society talks about how having a savings habit not only helps achieve specific goals, but can also help with bills and improve overall life satisfaction.
It might seem obvious, but having a regular saving habit is good for not only your finances but your wellbeing, too. Being able to access cash when you need it is one of the first steps to budgeting and is fundamental in withstanding a financial shock. Our new report has also shown that no matter how small the amount, saving regularly also improves life satisfaction.
For some, regular saving has become even easier with the advance of technology, taking advantage of the ability to send a set amount each month from our current accounts automatically. Others find stuffing envelopes with cash each month to be the way forward. The most important step to take towards building financial resilience is for people to start a savings habit – however that works for them.
Nicola from Peterborough told us how a regular savings account works for her:
“I opened the account to save up for my car MOT and potential repairs… I thought the account would just be a good way to put away a bit of money and save up for expenses across the year without having to worry...”
“…I tend to split my savings into different pots so I know I’ve got a little available to cover the bills. It really gives me peace of mind knowing it’s there and once in the habit each month I don’t miss the money going out.”
Regular savings accounts are one way we can encourage our members to establish healthy savings habits. They are great help if you have a goal in mind, a special occasion, a wedding, or even saving up for future investments like a car purchase, house deposit, or, like Nicola, to help cover the year’s expenses.
Committing to saving a set amount each month will help focus on the goal and help you find and maintain that habit. Regular savings accounts often come with a higher interest rate, too, which you can take advantage of and help your savings grow a little quicker.
