Saving money is important, and with a little effort, you can turn it into a healthy financial habit. Research suggests that a new habit takes a little more than 2 months to form, and after that, a behaviour becomes automatic. Remember that saving is good for your health and mental wellbeing too, so it's worth getting into the habit as soon as you can.
Here's a reminder of the main points:
Saving not only helps you reach your financial goals, it's also good for your mental health.
Before putting money into savings, it's usually sensible to pay off high interest debt first.
Set savings goals and review them regularly to help you stay on track.
Create a budget to help you establish your starting point and how much you can afford to save.
Saving any amount of money, however small, is worthwhile. It can help you get into the habit of saving.
Remember the value of compound interest. The earlier you start saving, the more time you have for the interest you earn to compound.
Choosing where to put your savings will depend on your goals.
During times of low interest rates, consider other ways to make use of your money, such as overpaying on your mortgage, making investments or paying off debt.
The sooner you start saving and planning for your retirement, the more you'll be able to save, and the more financially secure you will be.
Aim to balance savings and investments to meet your long term savings goals.
See why saving money is the most important habit you can adopt.
Check out how to find the right balance between saving money and paying off debt.
Explore our 5 tips for creating and keeping a habit of saving your money.
Ways to set specific savings goals to stay on track with your short and long-term goals.