No savings? Start small, save smart

Saving money is a habit that can give you peace of mind, even if you don't have much to put away at the start. 

New research by the Building Societies Association, as part of UK Savings Week[1] reveals more about the emotions behind our saving habits and our biggest goals when it comes to saving.

In this article, we’ll share some of the main findings of the research and five practical tips to help you start saving.

Are we a nation of spenders or savers?

A quarter (27%) of people say they’re spenders rather than savers. This figure doubles to more than half (54%) for those without any savings put aside.

Many Brits admit to having less than £100, or no savings at all, but nearly half (42%) are confident they could start a regular savings habit of at least £10 per month.

Why is saving so hard?

60% of people who haven’t got any savings say it’s because they don’t have the spare money to save. A quarter (25%) say it’s because their savings goal is unachievable and 22% say it’s because something always crops up that they need to use their savings for. 

58% of people with no money saved have negative feelings when they think about their savings including worry and anxiety (30%), shame (11%) and guilt (9%). If these are feelings you’re struggling with, there are organisations who can support you with money management.

The UK’s financial goals

People who don’t currently have any savings said paying off debt is their number one future saving goal (39%) followed closely by the need for an emergency buffer (38%). These figures highlight just how much strain many people are under when it comes to their finances.    

Overall, the nation’s biggest savings goal is to build a rainy-day pot, with a third (33%) of people putting money aside to cover unexpected costs. Around one in four are savings for holidays (26%) and for later life (25%).

The positive impact of putting money away

When people do have some savings set aside, their feelings change dramatically. Nearly half (46%) of those with savings of under £100 have positive feelings about their savings, such as optimism, pride and sense of achievement. This rises to 68% for those with savings between £6,000-£12,000.

How to save money

Even if you only have a small amount to save each month, taking the right approach can maximise your money and grow your savings pot over time. Here are our five tips to help you get started.

1. Start with what you can afford

Start with what you can afford so you get into the habit of saving regularly. If you’re not sure where to find money to save, use a budgeting app. You’ll be able to track your spending to see if there’s anything you can cut back on so can free up funds to put towards your savings. Here’s a list of the top-rated personal finance apps that can help you budget.

2. Set a goal

Having an achievable savings goal helps you stay focused. Whether you’re saving for a holiday, an emergency fund or just building a financial buffer, setting financial goals keeps you on track. 

3. Automate your savings

One of the easiest ways to stick to your savings plan is to automate it. Set up a standing order to transfer a fixed amount to your savings account each month, preferably for the day after payday so you remove the temptation to spend it. Many budgeting apps also offer round-ups on your spending to help automate your savings. 

4. Find the right account

Before you start putting money aside, it's important to choose the right savings account.

Half (50%) of savers aged under 35 don't know their current interest rate, so research the best accounts on offer. Even a small difference in the interest rate can add up, especially if you’re saving long-term. Our sister site, Be Clever With Your Cash, maintains an up-to-date list of the accounts with the best savings rates, so you can make sure you’re maximising your savings.

5. See what other customers think

With so many providers available, knowing who to choose can be overwhelming. Reading Smart Money People savings r­­­­eviews as part of your research will help you understand how customers feel about providers and what it’s really like to be a customer.  

Making decisions about your savings can be confusing enough without worrying about which account or provider to choose. Reading about previous experiences whether good or bad will help you make a smart savings decision.

About UK Savings Week - 9-15 September 2024

UK Savings Week is a Building Societies Association led campaign with a clear social
purpose of getting people engaged in saving, whether that’s people who don’t have any savings to fall back on in an emergency, or people who have some savings but which could be working harder for them.

14 million people in the UK have less than £100 in savings. There's also more than £250 billion in accounts that don't pay any interest.

UK Savings Week has two key ambitions:

• To create 2 million new regular savers by 2030
• To move £50 billion from 0% accounts by 2023

1 Source: This research was conducted by Opinium, on behalf of the Building Societies Association. They surveyed 2,000 UK adults online between 6-9 August. The results have been weighted to be nationally representative.