30th September 2022
It's UK Savings Week, and today we're talking about the final step to healthy savings habits: staying in control.
Being in control of your spending is crucial in your savings journey. This control comes from accepting there will be temptations, and planning in advance for how you're going to deal with them.
Temptations are normal, but they’re still important to be aware of. If there are places or occasions where you know the temptation will grow, try to avoid going there too much if you can. Going into situations ready to recognise when you're being tempted to spend is the best way to gain control of your finances. Another way not to succumb to your temptations is to differentiate a ‘want’ versus a ‘need’. A ‘need’ is something you cannot fundamentally live without; food, bills, and shelter for example. You shouldn’t feel guilty for spending on a need. ‘Wants’ are driven by temptation – you ‘want’ an expensive new car when a cheaper pre-owned car will do.
For some, not having access to money you know you won’t need short-term is a good way of staying in control. For example, a Fixed-Rate Bond means you won't have access to your funds until a set amount of time but will often have higher interest compared to an Easy Access Account, which is a better option if you need to access your money quickly, like for an emergency.
Look at ways to help you stick to your budget, there are loads of apps out there to help and using pre-paid cards or savings pots to split up your money could help you structure your spending better.
Saving is a long process, but it’s important to see it as an investment for your future. Building these habits now, regardless of what age you are, will give you financial security and help you achieve your goals.