7 financial habits to help you manage your money
The most effective way to make a difference to your long-term savings is to develop good financial habits.
Forming habits that fit into your everyday life can mean you’re growing your savings without even noticing!
Building a savings habit to help you save more money
According to a YouGov poll, 41% of people surveyed in the UK made “saving more money” one of their New Year’s resolutions for 2023. But we all know New Year’s resolutions are notoriously easily forgotten - with over 55% of resolutions abandoned in the first half of the year.
If you’re committed to putting more money in your savings pot this year, here are a few tips to create sustainable financial habits that are easy to keep up with and that blend into your daily life.
It’s always a good time to start saving
You now have a solid idea of the habits you need to develop to build up your savings pot in a way that fits into your everyday life. But your first step is to open a saving or investment account.
If you feel comfortable with investing as opposed to saving in cash, there are many products out there to suit different goals.
ISAs can be a good place to start, as you won’t pay any tax on money you make from your savings growing.
If you’re saving up to buy your first home or to set yourself up with a retirement fund, a lifetime ISA gives you a 25% government bonus on top of everything you invest. You can invest up to £4,000 in a lifetime ISA each tax year, which means you could get up to £1,000 extra in your account.
If you’re saving up for a dream holiday, a new car, a rainy day fund or any other long-term goal, a stocks and shares ISA could be a great fit. You can invest up to £20,000 a year into ISAs in your name.
If you’re dedicated to saving on a regular basis, both our Lifetime ISA and Stocks and Shares ISA can be opened with a direct debit of just £25 a month.
Our Stocks and Shares ISA and Lifetime ISA both invest in stocks and shares. This means they have good long-term growth potential, but the value of your investments could go down as well as up so you could end up with less money than you've put in.
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