Business & Investment

Savers who set their money aside on payday can save 114% more a month!

Image Source: Getty Images

Saving money is a big problem when it comes to economic milestones. Without emergency funds and money to invest on the side, it can be very difficult to move forward financially.

According to a recent study by Automatic Savings App ChipSavers who set their money aside on payday can save 114% a month, averaging £ 168.47. In fact, when Chip looked at the financial habits and patterns of 300,000 users, they found that paying for themselves first could save savers an additional £ 2,021.64 per year.

Focus on financial milestones

Autosave apps use AI technology to understand your spending habits and save money based on them. This allows you to save for your own financial milestones and goals without even thinking about it.

The additional £ 2,021.64 saved this year could move towards the savings goal or reach one of the money goals.

According to Chip, the top money goals for 2021 are:

  1. Financial safety net
  2. holiday
  3. Home deposit
  4. Christmas
  5. credit card
  6. Car deposit
  7. wedding
  8. Bill
  9. Car insurance
  10. Driving training

Chip money expert Tom Martin explains: “If you need a motivation to finance this year, think about yourself in the future and where you will be next year if you can reach your money goals. As they say, it’s perfect for organizing your money. The best time is yesterday and the next best time is today. “

Why you have to pay for yourself first

According to Tom Martin, paying for yourself first is one of the most important things you can do to supercharge this year’s finances.

“As soon as you get paid, and before you get caught up in the excitement of paying for your account, you just transfer the amount you choose to your savings account. Invisible, don’t worry,” Martin says. “When calculating the amount, take into account invoices, direct debits, and other regular withdrawals, but keep in mind that you can always adjust to something feasible and sustainable. Think of it as paying for your future self. “

You can do this manually, but the Savings app makes it easy to automate the process. This reduces the temptation to “cheat” and increases your chances of keeping your financial milestones at the forefront of your goals.

For example, Chip’s Payday Put Away feature automatically secures a certain amount of money when salary reaches your account, eliminating the temptation to spend.

Reasons to save now

“As always, a lot every January Saving challenges And hints are often fun, but unsustainable, “says Martin.

According to Martin, in addition to securing money for planned financial milestones, the extra money saved in these challenges can serve other purposes as well.

Debt liquidation

If your unsecured debt is digging into your income and savings, it’s time to look up the amount you’re borrowing and then come up with an action plan. “But if you find yourself struggling seriously, I recommend contacting you. StepChange, A debt advice charity that can provide free financial advice based on your situation, “Martin adds.

Work your money

Make sure that all the pennies you set aside are profitable, not just saving. “It’s hard to get good returns these days, but it’s not all fate and darkness. The new Chip + 1 account pays the highest 1.25% (fluctuation) return on the market. This is 125 of the big banks. Double, but investment can provide another way to increase interest in savings, “Martin said.

What’s next?

If you are looking for more ways to work your money for you, sign up for My Wallet Hero’s. e-mail magazine??You receive our team Tips for saving money, Lifestyle hack And Convenient Personal Finance “What You Need to Know” – Deliver directly to your inbox …

To sign up now, enter your email address below.

Some of MyWalletHero’s offers are from our partners — that’s how we make money and keep this site going. But does it affect our reputation? No. Our commitment is you. If the product is not good, our rating reflects it or we do not list it at all. We also aim to show you the best products available, but we do not review all the products on the market. Click here for details.. The above statement is for The Motley Fool only and has not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors. The Motley Fool UK recommends Barclays, Hargreaves Slansdown, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.

Savers who set their money aside on payday can save 114% more a month! Savers who set their money aside on payday can save 114% more a month!

Back to top button