Image courtesy of Tom Ahearn
Image courtesy of Tom Ahearn

It can be really reassuring to know that you have some savings behind you. To know that there is some money in a savings account so if you need to buy something unexpected, in an emergency or run out of money you will have some money to fall back on. However, it can be difficult to save the money that you need so that you can build it up and have it as a back-up. It may be a lot easier than you think though.

Savvy savers will put some money away each month before they spend any. This way they know that they have already saved some and they will budget accordingly so that they do not overspend in that month. There are even some which say they will save 20% of everything that they earn and once they get into that habit, they easily continue with it. Many people will put what is left at the end of the month in a savings account, but that way, there may be nothing left to save. It can be hard though, to imagine how you will find money to save each month if you are not finding that there is anything left.

Firstly, it is wise to see whether you can earn more money or spend less. Although this may seem really obvious if you look at every possibility you may find that you find things that you have not tried out before. Firstly, ways to make more money can include asking for a rise, finding a better paid job, working more hours, taking on a second job, selling things you own and do not use any more or starting a business. Spending less can including changing lenders, insurance companies, utility providers, supermarkets as well as trying to use less electricity, food, water and generally buying less things, particularly luxury items. Just being more aware of what you are spending can really help.

You should find that if you make an effort you will be able to manage on less money. It may be hard to start with but it will get easier as you practice and you may find that you will be able to save more and more money each month as you get into the habit of earning more or spending less or both. It may not be easy but it is possible for most people apart from those on the very lowest of incomes.

Make sure that you regularly check how much you have in your savings account as you will find that you are motivated by seeing the amount grow and it will make you want to save even more. Then you may be able to afford to spend some of those savings on a holiday, treat or keep them so that you have something to fall back on when you really need it. If you have debts, you can use the savings to pay those off and this will mean that you will have less interest and repayments to pay each month which should allow you to save even more money.