Should You Be Putting Money Aside?

Christmas is over for another year and I am sure many people will feel a sense of relief due to the financial demands that the festive season brings, however some may also be worrying about the state of their finances. Christmas can manifest debt and coupled with the ongoing cost of living crisis where prices still remain high, it is little wonder that there is concern around money at this time of year.

Those in the financial know have always encouraged individuals to regularly save money, no matter how small the amounts, ready for unexpected bills or emergencies. However, for those who are currently unemployed or on low wages or indeed those who are earning what may be deemed as a comfortable wage, may have debts and outgoings that prevent any type of saving.

With high outgoings for the necessities such as the rising costs of rent, food and utility bills as well as the cost of additional essentials such as travel costs to and from your place of work, insurances and the demands of a growing family, saving money can seem impossible.

However, if your car breaks down or you need to pay for a school trip later on in the year, wouldn’t it be reassuring to know that you have a little nest egg tucked away that is designed for expenditures just like these? It can also help you to steer clear of accruing any more debt than you already have.

Many people genuinely struggle through the month and find that they simply have nothing spare to save and of course, if this is the case then you should be prioritising debt management and ways in which you can reduce the amount of outgoings before contemplating saving money. There are many well known and trusted organisations that specialise in helping people with debt and managing finances and giving tailored guidance and advice. None of this should cost you a penny and can help you get back on track with your financial situation.

Now seems an especially good time to start saving as there are some really good offers with regards to the rate of interest that you can receive on savings accounts which has improved in recent years. There are numerous savings accounts available but you must ensure that there will be no fee for withdrawing your money and that there are no restrictions on how often and how much. For those on certain benefits, bear in mind that if you have over £6,000 in savings then your benefits may be reduced according to the amount you have and usually savings of £16,000 or more will necessitate a complete stop to many benefits. Make sure you know exactly what the criteria is for the benefits you receive as not all have the same rules.

It is wise to carefully scrutinise all your outgoings and then work out a plan to evaluate what you can save each month and whether this is £5, £100 or more, it will be worth it to see the amount adding up each month. It is usually best to start off saving a small amount and then once you realise that this is manageable then you can continue with these amounts or even increase them if possible. Saving money provides financial security and peace of mind. It also offers a safety net for unexpected expenses and the opportunity to achieve your financial goals, however big or small.