So, you don’t have a substantial monthly income and are used to living from pay-check to pay-check. This is the reality for a lot of people and the rising cost of living hasn’t made it any easier for us to manage our finances in the way that we would like. But if this last year has taught us anything, it’s how quickly life can unexpectedly change and how important it therefore is to have some savings, however small. Though it’s not the easiest thing to do, it’s important to have some cash set aside to cushion against unexpected costs and emergencies which will almost always occur however hard we might try to avoid them.

Read on to learn more about why savings are so important and how you can get started on your savings journey.

There are so many benefits to having a nice pot of savings. Whether it’s a large amount that is helping you get on the property ladder or even if it’s just enough to cover those small, unexpected expenses, savings offer a little extra peace of mind. Here we share some of our favourite benefits of having savings.

Emergencies Covered

Many of us have been in a position where a broken-down boiler or car repair has taken us by surprise and in that moment have thought how great it would be if we had a little bit of money stashed away for a rainy day. Even with a solid monthly income, it can be difficult to prepare for a financial emergency as an unforeseen expense can pop up from anywhere. Having a little savings pot would mean any sudden expenses can be covered without affecting your income for the month and prevent the stress associated with worrying about how to cover the emergency.

Borrow Less

A small loan in a time of need isn’t necessarily a bad thing – especially if the loan is affordable. Whilst instant short term payday loans can be an easier way of managing your money if an unplanned expense should arise, it’s not always the preferred option. Borrowing money may add further financial pressures, particularly if you are covering a large expense. So for many of us, it’s probably better to spend the money you already have saved and replace it once you’re in the position to do so.

Job Loss? No Problem

Many of us have witnessed redundancies and furloughs over the past 18 months. You may even have first-hand experience of job insecurity. Often this will have been due to circumstances that were outside of your control, leading to financial struggles due to not having savings to fall back on. It’s generally advised to have at least 3 to 6 months of your salary saved up at any given time so that if you should lose your job for any reason, you can cover your basic needs and essential expenditure for the next 3 to 6 months whilst you look for a new job. Whilst it might take some time to reach that goal, there’s no better time to start working towards it than now.


It’s great to save for the big stuff – a car purchase, a new home or a family holiday. But when you’ve put all your money away for the big stuff, what’s left for having some fun? With summer here and the world now returning to some form of normality, you’ll want to make sure you have some reserves set aside purely for entertainment! Whilst days or nights out don’t have to be expensive, by setting aside funds solely for this purpose, your money can be managed more responsibly, and you’ll hopefully be less likely to spend more than is necessary. Separating funds for different purposes like having a separate holiday fund, and another for activities, is also just a great way of ensuring you aren’t dipping into money that should be used for your essential monthly expenses.

Save for a house

Saving for a house is probably at the top of most of our saving goals, most likely because it will probably be our largest most daunting first purchase – but it doesn’t have to be difficult. The current property climate hasn’t made it easy for first time buyers, but the sooner you start saving towards your house purchase, the closer you’ll get to one day picking up those keys! There are a few government schemes in place to make saving for a house easier, such as the Lifetime ISA for example, and you can use these to your advantage to get to your savings goal much quicker.

How can I start saving?

It all sounds so simple – just start saving – but of course things aren’t always that straightforward for everyone. Each of our financial circumstances are different which means tailoring your approach to suit your own financial circumstances.

Start by setting yourself a goal

What is it that you want to achieve or do with the money you are setting aside? Perhaps you want to buy a new computer, go on holiday, or buy your first home. Whatever it is, be clear about the purpose, set yourself a savings goal and work towards it.

Work out your income and expenditure

It can be daunting to sit down and comb through your finances, especially if you haven’t done so for a long time – if ever. But if you’re saving on a budget, the best way to set yourself a realistic goal and work out how much you can actually afford to put away each month, is by looking at how much you are spending vs how much you earn. If it looks like you’re spending too much money on things you don’t need, you can cut down or cut them out entirely which can free up funds for your savings account.

Why is saving important?

Saving money is important because it can provide more financial security and stability, keeping you covered if an emergency or sudden change in circumstance should arise. More importantly, it can give some peace of mind as the stress that comes with worrying about how to cover sudden expenses, is alleviated. Whilst saving money might not necessarily make you rich, it could give you the freedom to make changes in your career, without feeling stuck or having to rely on your current paycheck.

As with many things, it might seem easier said than done - and it is – which is why there are a number of guides available with helpful tips on ways to save money. Saving is definitely no easy feat, especially if you don’t have a large income and struggle with money management but remember that there are always ways to adapt these methods to fit your own specific circumstances. Even if it’s not something that you can do straight away, keep it in mind so that when you find yourself in a better financial position you can employ some of these techniques and prepare for a better financial future.

If however, you’re still looking to borrow in the interim and are sure that you can afford to do so without affecting your financial situation in the long term, it’s best to do your research on where to borrow money, so that you are not paying extra fees and interest. There are many options that are available and it’s best to explore them fully before jumping in.