How to start saving - Tips and tricks from The Cambridge

Saving money can feel daunting, and it can be hard to know where to start. But with a little planning and perseverance, it can be easier than you might think.

What are you saving for?

Do you dream of treating yourself to a family holiday, new kitchen or new car? But do you also find putting money aside to fund these dreams quite difficult?

Working out what it is that you’re saving for is a good place to start. It helps you set goals, understand how much you’ll need to save, and keep you on track with your spending and saving.

Have a think about what it is you are saving for in the first instance, and plan from there. Once you understand approximately how much you need to save, it’ll make it easier to work out exactly how you’re going to do it, and how long it’ll take to save.

Not every saver has a particular goal, of course. Perhaps you’re just creating an emergency fund, or maybe you'd like some added security for the future. Whether it's for your retirement, your children’s education or potential maintenance costs for the family home, saving money is a wise choice in order to avoid any panics further down the road.

How much can you save?

This question might seem obvious, but the answer may not be as clear as you think. Just because you get to the end of every month and don't have much left doesn't mean you can't save.

Keeping a monthly budget and managing your spending and expenses can help you to save a lot of money in the long run. Try working out your monthly bills and outgoings to determine the amount of non-negotiable funds that leave your account between each payday. Download our free budget tracker to get started.

Factor in your mortgage or rent costs, utility bills such as gas, electricity, water and the internet, any car running costs such as insurance, finance and road tax, and other financial commitments you’ve made.

Use a tracker such as a spreadsheet to prepare months when your spending or bills might be higher than others. Alternatively, The Money Advice Service offers both a budget planner and a savings calculator. There are also apps such as Mint to ensure you’re keeping a close eye on your outgoings, wherever you are.

For example, your car might be due an MOT, or you might pay your car insurance yearly - so it’s important to map out the months where you might be due to spend more and edit your savings goals accordingly.

With a little planning and organisation, it’s easy to keep an eye on your regular outgoings, and ascertain where you might have some wiggle room to allow you to save.

Finding the right savings account

You’ve assessed your finances, found opportunities to save, and now you’re wondering where to put the extra cash. Next, you’ll need to work out how much you can save each month and decide which type of savings account would be best – easy access, notice accounts or fixed term savings, such as a Fixed Rate ISA or Bonds.

The account that looks best on paper may not always be the account that is best for you. It is important not to simply go for the account with the most attractive interest rate, as it might not be suitable for several reasons.

For those looking to keep their savings safe, with the option to make withdrawals should you need to, a notice account is a fantastic option. Notice accounts are likely to have good interest rates and are a great option to grow your savings whilst keeping them secure. It is important to know that to withdraw your funds you often need to give notice or pay an interest penalty fee.

Other accounts, such as easy access accounts may require a minimum monthly payment, which is great for ensuring regular payments which are easy to track.

Fixed rate bonds enable you to plan ahead for the future, with a better insight into how much your money will grow over time. They're a safe place to lock away your savings for something special – whether that’s a big holiday or a new car. It’s worth remembering that these can’t be accessed until the fixed rate term has been completed.

You can see all the savings accounts available at The Cambridge by visiting our personal savings page. Find out how the different types of account could suit you by reading our 'growth and flexibility for your savings' guide or if you’d prefer a face-to-face chat with our friendly team, let’s talk in store.

Set up a standing order

If you're sure you can afford it, and your savings account allow regular payments, setting up a standing order to make regular payments from your current account into your savings account is a great way to remain consistent. Choose a day which is suitable - such as payday, so the funds leave your account without you needing to remember.

It’ll also prevent any hesitancy to move the funds over into your savings account, as it’ll be automated for you. It’s creating a habit without needing to do much at all!

If you treat your savings contributions as a bill, the chances are that you’ll hardly notice it going out, and it'll soon become an accepted part of your monthly expenditure.

Savings hints and tips

Make the most of cashback sites

Do you make the most of cashback offers? From cashback on car insurance to hotel rooms, there are a whole host of schemes and websites that can point you to the best deals. Check out the likes of Quidco and TopCashback to make money on future purchases!

Can you join any loyalty schemes?

Use loyalty schemes wisely. In many large UK supermarket chains, points make prizes! Often, supermarkets will slash their prices if you use their loyalty card, and there might also be the opportunity to collect points to turn into vouchers towards your next shop.

Supermarket swap

With that said - we are all guilty of staying loyal to our local supermarket. But if you have the option, try getting your weekly shop at a budget supermarket and discover how much you can save. There are tools available online that allow you to compare top supermarket prices.

Try the deals

BOGOF, free coffee perks, two for one – while the advertising for these deals can be annoying, when you're trying to boost your savings, it really is true that every penny counts. So, if your mobile phone deal comes with a free theme park ticket or a half price meal deal at a local pizza restaurant, make the most of it!

Student discounts

Are you eligible for a student discount? Some employers also offer benefits and savings rewards in selected shops and for certain services. Again, doing your research and making the most of the benefit schemes can help you save money.

Care-free with coupons

Using coupons cut out of magazines might seem a bit old fashioned, but it's a viable method of saving money. Check out coupon websites such as Groupon and Wowcher for savvy savings.

Buying less means saving more

Only purchase what you need. Avoid the lure of sales promotions and stay focussed on only purchasing the necessities. If there is something you need to buy, make sure you shop around to find the best deal.

You can make savings in all sorts of surprising places. Clearing out and selling things you don’t need on sites such as eBay and Vinted is not only great for organisation, but helps you save extra cash that was sitting in your cupboards anyway!

It might take some research and sometimes waiting for the right deal to come along, but when you use these money-saving options wisely, they can make a significant impact on your spending and saving options.

Saving is personal to you and every little bit helps. Take a look at what you can afford and save where you can – it all adds up!

Make the most of every opportunity

Sometimes you have to make the most of every savings opportunity, particularly if you're saving for something large such as a deposit for a house.

It can really pay to save wherever and whenever you can. Whether it’s putting loose change into a tin and depositing it into a  account or selling items you haven’t used in a while, there are opportunities to save almost everywhere you look.

For those that are self-employed

For those who are self-employed or on an irregular income, it’s even more important to track your outgoings in order to see how much you could save. Though it might not make sense to set up a regular standing order, opportunities to save money can still arise and you’ll still find ways to save.

Don’t forget to reward yourself

It’s also important to reward yourself semi-regularly to keep yourself on track. Rewards don’t need to cost a lot but are crucial in helping you stay motivated. Whether it’s a meal out, those new jeans you’ve been eyeing up for months, or even a trip to the cinema, giving yourself a pat on the back once in a while is only going to keep you motivated to save even more.

Save for your goals with The Cambridge

With The Cambridge, you can personalise your accounts using our online services including The Cambridge Money App. Set up savings goals and see how great it is to see your "travel plans" or "new kitchen fund" account keep growing.

Find out more about how we can help you start saving today by calling our customer contact centre on 0345 601 3344, or visiting your nearest store and one of our team will be happy to talk you through our savings accounts.