Grow Your Savings

GROW YOUR SAYINGS Not unlike planting a tree and tending to it for years, growing your savings is a long-term process. It requires a commitment to steady growth over long periods of time, along with an ability to do the small things. STRUGGLING TO SAVE UK HOUSEHOLDS ARE SAVING LESS' 8.2% 7.4% 6. 1% 5% 4.2% 3.4% 3% 1% 0.2% 2008 2009 2010 2011 2012 2013 Though saving had surged in recent years, the last six months to a year have seen a dramatic downturn. QUITE A BIT LESS, ACTUALLY 2,3 Average Current Savings £1,678 Average Monthly Earnings £2,322 WHILE SOME AREN'T SAVING AT ALL 5 24% 13% 63% - Not trying to save = Have no savings at all = Trying to save UK Total Population-63.23 (in millions) Nearly a quarter of the population isn't trying to save, while over an eighth of the population doesn't have any savings to speak of. That's bleak! INTEREST RATES ARE FALLING Making it even harder to get a return on your savings, the average interest rates for savings accounts are dwindling. Easy Access Accounts 2-Year Savings Bonds 3.25% 3.2% 3%- 2%- 1%- 3%- 2%- 1.9% L6% 1%- 2012 2013 2012 2013 This cutting has resulted in a loss of £17 billion this year for individuals trying to save. SET YOUR PERCENTAGES A trick for ensuring that you're putting money away each and every month is breaking down your monthly spending averages and adjusting accordingly. Determine what you spend on the expenses you can't part with, whether 1 they're needs, like food and housing, or wants that you're committed to, like the cable bill. Set a percentage of your income that you'll keep this expense amount 2 below 60 percent is a good starting point, but choose an amount that works best for you. Once you've established your magic number, commit the remaining 3 percentage of your income to savings. You can divide this amount among things like long-term investments or retirement savings, or simply toss it all into your savings account. SEEDS MAKE CHANGES DIG YOURSELF KEEP AN EYE ON SPENDING OUT OF DEBT You can't save while debt is looming. Make a list of all your debts, and budget the max amount you can Change your habits and track your spending, getting an idea of what you spend and where you spend it every month. Spending less means saving more. pay per month. MAKE SAVING AUTOMATIC Set up direct deposit so that a portion of every paycheck goes directly to savings. Also, some banks offer automated savings programs that will put a percentage of every debit card purchase into savings. MAKE SAYINGS STAY SAYINGS WATCH YOUR BALANCE With online options and smartphone apps that allow everything from account monitoring to fund transfers, it's easier than ever to optimise your balance. And bigger balances often qualify for increased savings rates. Many banks put a limit on the number of withdrawals that can be made from your savings account each month, charging you if you exceed that number. Keep it simple and leave your savings where they can do the most good. POUNDS to POCKET REFERENCES 1. Savings ratio UK. (27 Jun 2013) Economics Blog. Retrieved 12 September 2013, from http://www.economicshelp.org/blog/848/economics/savings-ratio-uk/ 2. How Britain is giving up on saving. (22 Feb 2013) Telegraph. Retrieved 12 September 2013, from http://www.telegraph.co.uk/finance/personalfinance/savings/9873834/How-Britain-is-giving-up-on-saving.html 3. UK Average Salary Graphs. (12 Sep 2013) Monster.co.uk. Retrieved 12 September 2013, from http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx 4 Eight million Britons have no savings, study reveals | Money. (24 Feb 2013) theguardian.com. Retrieved 12 September 2013, from http://www.theguardian.com/money/2013/feb/25/millions-britons-without-future-savings 5. List of countries by population. (n.d.) Wikipedia. Retrieved 12 September 2013, from http://en.wikipedia.org/wiki/List_of_countries_by_population 6. Savings rates plunge further | Money. (5 Jul 2013) The Guardian. Retrieved 12 September 2013, from http://www.theguardian.com/money/2013/jul/06/savings-rates-savings 7. Simpler saving: The 60% Solution - 1 - income & budgeting. (27 Oct 2011) MSN Money. Retrieved 11 September 2013, from http://money.msn.com/how-to-budget/a-simpler-way-to-save-the-60-percent-solution-jenkins.aspx How to Get Out of Debt (with Debt Tracking Charts). (n.d.) wikiHow. Retrieved 10 September 2013, from http://www.wikihow.com/Get-Out-of-Debt 9. 5 Winning Ways To Grow A Savings Account. (n.d.) Bankrate.com. Retrieved 10 September 2013, from http://www.bankrate.com/finance/savings/5-winning-ways-grow-savings-account.aspx# The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.