Did you know that one in seven women have no savings?
Worse than that, two thirds of ladies wouldn’t be able to last three months without borrowing money if they lost their job.
The startling facts that have been revealed in new research by the Building Societies Association come as no surprise given the current cost of living crisis and the female pay gap.
With low interest rates for so many years, regular saving wasn’t seen as an attractive prospect but with a recent interest rate hike, we now see saving accounts with seven per cent interest – something that was unthinkable even two years ago.
There is now a real incentive to get organised and find spare cash where you can and stash it away in a high interest account.
Regular saving, whatever the amount, not only creates financial resilience but it improves your ability to cope with unexpected circumstances and life events.
Here’s three tips to try:
THE 50/30/20 METHOD
Try using the 50/30/20 approach to budgeting. This means allocating 50 per cent of your take home pay on your needs (bills, food, minimum debt payments), 30 per cent on wants (eating out, leisure, sport, etc) and 20 percent towards the future you (saving for emergencies, short-term and long-term goals). This split may not work for you when money is tight, so simply adjust the ratios as you go.
EARN CASHBACK
This is a no-brainer! If you are buying something anyway, it makes sense to do it either via a cashback website, such as Topcashback or Quidco, or through a cashback credit card. Use it for big ticket items like insurance or buying a new phone and the money soon adds up. Typically, you will earn 1.5-2% on your purchases, which could add up to hundreds a year in cash and vouchers depending on your purchasing patterns. Always pay the card off in full every month, otherwise you could cancel out the benefit in interest charges.
Check comparison sites such as Uswitch and Moneyfacts to find the best cashback cards.
HAVE A FINANCIAL FAST
Have a weekly no-spend day. It’s no bad thing to have the occasional spending detox – not only will your bank account feel healthier for it, but it will also make you more careful with your cash in the long term. Make this easier by turning off any app notifications you have that are likely to lure you back. Unsubscribe from marketing emails – or set up a separate email account for these so you don’t come across them every day – and change the ad settings on your social media accounts (less targeted marketing might just help you skim over what you see).