Are you a saver – or do you just think you are?
A survey has shown that three-quarters of consumers class themselves as savers, even if it’s only using coupons and cashback. That’s a very different proposition to growing your long-term wealth, by saving money for a special treat or later life, which just 42% of people are doing. But you can still be a savvy discount-hunter and also make it worthwhile... If you can be organised enough to set aside your gains and pay them into a savings account.
Jenna McKenzie-Day, Product Manager at The Nottingham, said: “Being savvy and looking for great deals when you’re out shopping is a good way to free up some of your money. What you can actually save is all down to people’s budgets – you could set aside from £10 to £250 per month. It’s a case of working out what you can regularly save, and treat it as a bill: set up a standing order and turn it into a regular savings pot.
“Regular savings accounts also ask you to only put in a relatively small amount each month. So do instant access accounts. They have a lower interest rate but you can get to your money if you need to.”
Here are Jenna’s six key steps to becoming a savings hero:
- Look out for bargains to help cut costs;
- Review your spending - get inspired by our #SavingSwaps to see where you could save when you usually spend;
- Set a realistic savings target;
- Make sure you actually put the money away;
- Leave it there if possible;
- Once you have a rainy day fund, look to reinvest it to get the best rate.
The research, by website TopCashback, found that while the majority of people consider themselves a saver, only 42% are putting away money regularly with most just spending wisely to reduce outgoings. Then they are not necessarily putting the money they save from being savvy – on average over £40 a month – into a savings account, meaning their efforts won’t have an impact on their longer term wealth.
Adam Bullock of TopCashback said: “Although consumers in the East Midlands typically save £41.60 a month by using discounts, it may not be enough when it comes to saving for a car, home or later life. People could be better off by making their money work harder for them.
“It is likely people are spending wisely to make ends meet, making it tricky to put away any leftover cash. But if people aren’t putting this money aside into a savings account, the efforts of spending wisely will not have an impact on actual savings and the need to make ends meet each month will only continue.”
One of our members chose The Nottingham because he found it friendly and a simple process to add small amounts to his savings account regularly. He learned the advantages of putting leftover housekeeping money into a Nottingham Building Society saver account to build up his balance. View our range of savings accounts to find the right one for you.