Watching weekly essentials and monthly bills grow while salaries stagnate has been putting pressure on household budgets for years. So, while many are trying to stick to budgets for our spending, it can make it harder to think about saving. At Hodge, we know the first steps towards building financial resilience can feel overwhelming in these uncertain times.
While inflation has fluctuated recently, with the Bank of England announcing a rise to 2.2% in August, there are practical ways you can make saving a priority without sacrificing your day-to-day comfort.
Christie Cook, our retail managing director at Hodge, has shared her top tips to help you start saving smarter – even if the current economic situation feels challenging.
1. Find the right account for you
Understanding the different types of savings accounts is key to making the most of your money. For example, Cash ISAs allow you to save tax-free, particularly useful if you’re building a large pot. Easy access savings accounts work if you’ll need quick or unplanned access to your money and Fixed Rate Bonds are great for building up a pot over the long term. Take some time to think about what works best for your financial situation.
2. Strike a balance between saving and spending
When starting your savings journey, it’s important to find a healthy balance between saving and living. Daily life can be hectic, it’s okay to treat yourself to small luxuries – whether that’s a coffee, a takeaway, or a night out with friends. You don’t need to cut back on everything to save.
3. Start small and keep it manageable
Saving money doesn’t need to feel daunting. Remember, the money you save is still yours, it’s just getting put aside. So, start with a small, regular amount. Whether it’s £10, £20, or £50 a month, getting into the habit of saving – even if small amounts – can make a big difference over time. The important thing is consistency.
4. Be prepared for the unexpected
Life is full of surprises, and that’s why it’s always smart to have something set aside for financial emergencies. By building up a buffer, you can give yourself peace of mind and be ready for those unpredictable moments.
How can Hodge help?
In today’s climate, it’s understandable that saving may seem like a challenge. With inflation affecting the cost of living and interest rates changing, it’s harder to set money aside – but starting with small, achievable goals is key.
At Hodge, we’re here to help you build your financial resilience, no matter the circumstances. Taking small, steady steps now can help create a secure foundation for your future.
Find out more about our savings account options and more savings basics on our savings hub.