Saving money can be a challenge, but for those who are able to afford to set aside some cash, it can have a great outcome. Express.co.uk spoke to Jane Brown, 27, from Northern Ireland who discussed how she has been able to change her savings habits.
Miss Brown said: “In the past, I can’t say I really had any savings habits at all, if I had money left I’d pop it in savings, but there was nothing I was really saving for.
“If there was a big expense, it used to be a huge panic. I’d see whether my parents could lend me any money for me to pay them back later.
“But COVID-19 changed things, as I had more money left at the end of the month, and I didn’t have anything to waste the money on.
“It really changed my outlook on saving and getting my finances together more.”
With a new approach to saving money in mind, all that was left was for Miss Brown to put this into action.
She faced challenges due to inflation, but has taken them in her stride to practice a useful saving tip.
Miss Brown explained: “My savings have had to take a hit over the past year, just for daily expenses, but also for unexpected expenses like my car repairs, and vet bills for my puppy.
“But that was before I established my savings pots, which have changed the way I approach saving.”
Tesco Bank found one in eight Britons are in a similar position, pushed into dipping into their savings on a regular basis.
Miss Brown has decided to take the approach of separate accounts for different costs in her life.
As someone just embarking upon their savings journey, she has described it as a way to remain disciplined and keep goals in mind when it comes to managing money.
She decided to open a Lifetime ISA, as well as several other savings pots to help her progress towards her respective goals.
Miss Brown explained: “Now, when I get paid I look at what I can put into each pot. I’ll put a certain amount into my house saving pot, another amount into my general savings for daily expenses, one for my car, and one for my dog, for example.
“My budget probably feels excessive at the moment, but it’s helped me to save hundreds and it helps me to be careful with what I buy.”
With the cost of living continuing to bite, Miss Brown also explained she is being far more intentional about her day-to-day habits.
She brings packed lunches to work in order to avoid spending money she doesn’t need to, as “little expenses were really adding up”.
The Brown family is also trying to slash their food waste, and cut back on the electricity they use around the home.
Many people will want to take similar steps to revolutionise their finances like Miss Brown has done, but might not know where to begin.
