SavingsDrive - How Can You Save Money Regularly?

When you ask people in surveys “Do you think you need to save money for the future?”,  over 85% say yes but yet it never happens. 

So do we really need to save money? Attitudes have changed. We hear about old people living in run down large houses, wearing clothes from a charity shop and yet when they die you find out they have left millions in a will.

In the UK we are now classed as a credit driven economy. Governments make credit and loans and cards easily available to spend, with the view that we pay back what we have spent. It’s like saving in reverse, and keeps the economy moving!

It’s a HUGE gamble for us though, on the fact that we will continue to work to earn a living to pay off the credit. But what would happen if you could not work or your income stopped?  You would struggle to pay your creditor and suddenly credit and loans are not so easily available.

When purchasing most large items such as a car or a house then you need some form of collateral or deposit. Young people in particular are losing the savings habit see our post from BBC News,  and see our post to see how income affects savings.

Savings and credit are all about balance.  
SavingsDrive is all about learning to save a little bit each month. How best to save it and what are the options.

Saving Facts

These facts are taken from a number of sources, listed below.

£ 1
saved

by each family would reduce the number of families falling into problem debt by half a million (Step Change charity)

£ 1

is the amount 4 in 10 UK families don’t have in savings (Money Advice Service)

1
million

British adults, have less than £10 a month left over each month after paying essential bills (MAS)

£ 1
more

spent by UK households in 2017 than they received in income (ONS)

Saving

How Can I save?

 So how can I save if I have very little money left over each month? That is a key question most people ask, so we recommend you have a look at the videos below for some ideas, and you can also take a look at BudgetDrive.

To start with the average UK family wastes over a £1,000 a year in out of date food. 25% of people impulsively buy something at the supermarket each week, this rises to 33% when you have kids. So we can save but we just don’t put our mind to it.

There are so many savings vehicles on the market from ISAs to Endowments to Unit linked or Trust Policies to traditional savings accounts.

These all offer various interest rates which tend to be on the low side at this present time. But the key is not so much the amount of interest you get but the ability to save money each month. A sure fact is: if every month you had to take cash to the bank and deposit it into a savings account very few people would be bothered. Therefore a regular savings amount coming out of the account automatically into the savings account is more likely to happen and if it’s an amount that you won’t miss the savings can build very quickly. Most people are pleasantly surprised how after a few years the money has built up.

This is your safety net for emergencies and for times when you really need it. Many employers run employee benefit and share schemes at work and these are often enhanced in terms of interest and benefits.

UK Savings Rates

household saving rate

Source: Macrobond – The Independent

There are 2 types of regular savings – long term 5-10 years plus and short term savings with immediate access.  It helps if you can save a small amount into an online account each month for those items 10 to 15 years ahead such as perhaps university fees or a special anniversary, weddings or special events. 

Short term savings is totally different and isn’t a luxury but a necessity.  The average savings for those who are saving is £4,212.40 which is roughly two month’s salary. But for those who do not save at all they have less than two weeks money. Having a safety net for you and your family is really important. 

How can I save?

Different types of saving

You can save at home in a piggy bank

You can save in the bank

Save from your salary straight into a deposit account

Do a regular savings plan with a leading provider

Savings app adhoc

Saving via an ISA product

…and their impact

– easy to get hold of and it never comes to much

– you will get practically nothing in interest rates

– good as it keeps savings separate

– regular commitment and better returns generally

– easy, convenient, can make saving easy and convenient

– tax advantages and info available

Savings

You do have to remember when taking out a savings plan what the risks are. Some schemes might offer higher rates of return but this may be riskier in terms of losing some of your money so it is important to read the fine print.
Kris Brewster, head of products for Skipton Building Society, which commissioned the research, said: “Having a healthy savings account is something everybody dreams of, whether it’s money put aside for a rainy day, helping fund your child through university or money saved for comfortable retirement.”
“These dreams cannot become a reality without taking time to save in the first place. Very often things like unexpected bills can crop up and have an impact on your savings balances. But our results found people are more prone to splurging money on things they don’t need, rather than saving it and it’s this that has the greatest impact.”

• More than 10% of the UK's population admit to being 'terrible' with money.
• 25% of adults has no savings, a study has found.
• Sky high monthly outgoings and attempts to clear substantial debt before putting money away regularly emerged as the main reasons.
• Despite not being able to find money to put away more than half said they wished they could save cash.
• 28 per cent sometimes go over budget every month.
• 10% of adults over the age of 55 don’t have a penny put away for their future – compared to 38% of 25 to 34 year-olds who are already saving.
• Almost 20% said they were doing their best to clear away debt first.
• 54 per cent of the average UKs income goes on essential living costs like rent or a mortgage, bills and food.

The top 10 things we're saving for
1. A rainy day
2. A holiday
3. Retirement
4. Life’s little luxuries
5. Home improvements/repairs
6. A car
7. A house deposit
8. Paying off debt
9. Periods of unemployment or low income
10. Child’s university fund

You also need to consider pensions and tax. You need an emergency pot or safety net, a medium term savings plan (10 years plus) and to think about saving into your pension. If you have any doubts about how much you need to be saving then look below and  / or get professional advice. The links below will help you learn about all the different saving plans, the advantages and disadvantages.
Click on the link to give you a full range of companies that supply savings products.

Also check out the government Money Advice Service for savings advice

You can use our MAS savings calculator

This video is very US based and you may find it annoying, but there are some interesting things you can do which are covered in the money saving tips.

For visitors

Why don't you join us?

You can register to join us as a member, when you’ll be able to download our stuff and comment, or as a YouDriver when you’ll also be able to check your health and set up your own action plans to make some improvements.  If you’ve already registered, sign in below. Or let us know what you think.

Laws of Savings

This video from the Phillipines might sound quaint and out of a different time, but the enthusiasm and ideas are infectious, even though you might disagree with some of the choices involved.

How to make saving money feel good

A Savings Habit That Works

This US video is completely different in style from the last one, but some of the messages are strangely similar (albeit in a different order!).  Perhaps there’s something in this…..

I
need advice on how to distribute my money, can save on my own and will choose the right savings plan

It’s great you are taking the steps to start looking at savings.  You can do the research and choose the right vehicle yourself, or get some advice.  Whatever you decide it’s necessary to see how much you can afford to save, and how to do it.  Look at BudgetDrive for more information on this.

I need advice on how to distribute my money

You can do research using our site and others but if you feel you need to talk to an expert then use the link below to access the directory of IFAs in your areas.

I can save on my own and will choose the right savings plan

The first thing to do is work out how much you can save. Then the first step is building a short term emergency safety net. Then consider medium term goals and long term plans including retirement. Use the links on our site to calculators and types of savings plans.
Click here to go to BudgetDrive
"Never spend your money before you've earned it.”
thomas jefferson
Thomas Jefferson
US Founding Father & 3rd President

Next Steps

It doesn’t matter what stage  you’re at – it’s important to be the best you can be.  At the end of the day it’s about taking personal responsibility – You Drive!

It’s really your choice. You can find out more information about the subject, or see other institutions that can help by going to Support. There you will find organisations, training, coaching, self-help courses and other items to support your personal change. We have also started developing a panel of experts to provide info, advice, help and support. 

More Information

Scroll down to see more information on this Drive.  If you register with us by providing an email address you can also download reports, white papers, quizzes and other collaterals.  Don’t worry, we will never ask you for any financial information, and we’ll only send you the information you want.

You can register for our site either above or in the footer below, and there’s more information available and you can comment and participate in discussions too.  We want to encourage our members to provide their own questions and experiences in order to help other members.  We only moderate for spam and inflammatory language – see our moderation policy here.

Soon you will be able to register as a YouDriver – you’ll get your own health dashboard, be able to assess your own health, look at how to improve it and build your own action plans.

We also show you links to other sites offering support in this area and also some products and services which might help you on our Support pages, which you can go to by clicking the Support button below.

Get Support

There are times when you need some help to meet your aims. At YouDriveHealth we try to help you to take control of your own health. Sometimes however you need a helping hand.

As the next step we are compiling a list of experts who can help you, whether by providing advice, help or specialised services.  In the future you will be able to access these experts from anywhere on our site you see our ‘Experts’ symbol.

We will be adding to our list of experts continually; we try to recommend things and partners that we have used ourselves, but obviously we can’t take any responsibility for any specific outcomes.  

If you click the button you’ll see what our Experts list will look like, with a couple of imaginary ‘experts’ added!

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See what other things can help

More information

Our post from PoliticsHome shows a report from the Building Societies Association shows that people on lower incomes are just as likely to save when essentials are dealt with.

Our post from BBC News has a lot of information on young people’s savings habits

Find an Independent Financial Adviser near you

Have a look at our budget planner from the Money Advice Service which sets out your budget and shows you how to organise your money

Have a look at our calculator from the Money Advice Service which shows how much you can save

Finder.com have a range of statistics on saving in the UK – this report is dated July 2019

Which? have an interactive guide showing 50 ways to make extra money

Money.co.uk have an article giving 9 free apps that will save you (time and) money

Our Money Advice Service guide looks at universal credit

This report from Toynbee Hall supported by JP Morgan Chase Foundation looks at savings for lower income households; download here.

This report from Toynbee Hall supported by Building Societies Association looks at encouraging savings behaviours – ‘beyond age and income’; download here.

The Office of National Statistics have quarterly sector accounts – section 5 shows the savings ratio, which fell to 4.1% in the quarter to March 2019; download here.

This Excel spreadsheet from the Building Societies Association compiled from Bank Of England data shows the balances with Building Societies, National Savings and Banks – it also shows the changes in these balances.

Download the Office for National Statistics bulletin on family spending from April 2017 to March 2018 shows that the household savings ratio in 2017 fell to its lowest level of 3.9% since records began in 1963.

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