We’ve all heard of saving for a rainy day – and many of us will have tried to do it, with varying degrees of success. The current financial climate means that it’s never been more important to have a financial safety net in place, but it’s also never been more difficult to save money.
With this in mind, it’s clear that many people need to adopt a more measured approach to saving, something that factors in the rising cost of living and poor returns of interest on many savings accounts.
From switching savings accounts to getting a better deal through credit card comparison, here’s some of our top tips for preparing your financial umbrella for that rainy day:
1. Shop around with your savings
With many savings options offering poor rates of interest, it’s important to look at other aspects of accounts. For example, some banks offer a service where everything you spend is rounded up to the nearest pound, with the difference automatically deposited into a nominated savings account. However, this will only be worthwhile if the extra spending doesn’t tip you into your overdraft, potentially racking up more charges than the interest you’ll earn.
2. Get more from your current account
Bundle deals are often the name of the game for getting the most for your money – and this includes with your financial products. So look out for current accounts which come with car breakdown cover and holiday insurance – products you’d buy anyway. Even if there’s a fee, this is often less than you’d pay for each policy individually.
3. Get a better credit card deal
Restlessness is a good quality to have as a credit card holder. The fact is, in most cases you don’t get the best deals by staying with the same provider, especially once your initial deal period has ended. So if you’ve held the same card for a year or two, check out what other credit card deals are out there. Perhaps you can get a better cashback percentage, or you’re now able to consolidate all of your outstanding balances on a 0% balance transfer credit card. Everyone’s situation will be different, but chances are there’s a better deal out there waiting for you to find it.
Whatever you decide to do to boost your savings, make sure it’s consistent – there’s no point doing something helpful once and never again. Make saving money a regular habit and you’ll soon be able to enjoy the peace of mind that a financial safety net brings.