How much should I save?

When it comes to savings and saving habits everyone will have a different idea about how much they should be saving and how much they should have in savings to protect them for unexpected emergencies.

Research conducted by Scottish Widows in 2014 confirms that when push comes to shove, we know what we’d protect and what aspects of our lives are most important to us.

Have you ever thought about how you would cope if you lost your job or you had an unexpected bill to pay for at short notice? How would you cope?

Scottish Widows discovered in their research that when faced with financial difficulties or dealing with a reduction in our disposable income the following would be most likely to occur

  • Cancel paid for TV subscription
  • Stay in more often
  • Cut back on eating out
  • Cancel gym membership

Getting into a savings habit can be tough and with increasing household bills it can sometimes be hard to find money to put aside.

Research by Scottish Widows also found that buy saving just £3 a day, you can cover yourself against the cost of unexpected bills.

Below are some hints and tips to help you on your savings journey.

Can you afford it?

It is always better to pay off debt before saving as in most circumstances your debt will be costing you more than your savings will be making you.

Set a realistic goal

Small changes are sometimes all that is needed to make a big difference and get you into the savings habit. By setting a realistic goal you won’t find yourself dipping back into your savings after only a short period of time.

Review your account

If you haven’t looked at your savings account for a while, now is the perfect time to review it. There are a variety of different savings accounts available to suit a range of savings needs. For more information about the saving accounts we offer visit newcastle.co.uk/savings

Don't forget to spread your money

It is important you protect your savings and the Financial Services Compensation Scheme (FSCS) are a free service that helps to protect you up to £85,000 or £170,000 for a joint account. When opening a new account, check that your savings will be protected by the FSCS so that if anything does happen to your bank, building society or credit union you will automatically receive a refund of up to £85,000.

Visit newcastle.co.uk/savings/fscs for more information on the Financial Services Compensation Scheme.

 

Source: Scottish Widows 2014 Savings Report

Newcastle Building Society Principal Office: Portland House, New Bridge Street, Newcastle upon Tyne, NE1 8AL. Newcastle Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Newcastle Building Society is entered in the Financial Services Register under number 156058. You can check this on the Financial Services Register or by contacting the Financial Conduct Authority on 0800 111 6768. Call 0345 734 4345 or visit us online www.newcastle.co.uk.