10th January 2025
This January, it’s the perfect time to reassess your finances and explore ways to improve your financial wellbeing. At Earl Shilton Building Society, we believe that being financially savvy can empower you to achieve your goals. Here are some practical money-saving tips to help you make the most of your pennies.
Create a budget
It can be helpful to start your budget plan by tracking your income and expenses. Use budgeting apps or simple spreadsheets to categorise your spending. This will help you identify areas where you can cut back. You can then use things like the ‘Zero Pound Method’ to allocate every single penny to a specific expense, from bills and rent to weekend treats. Make sure you revisit the budget as life circumstances and priorities change.
Review subscriptions
Take a closer look at your subscriptions, including streaming services, magazines, and apps. Cancel any that you don’t use regularly or consider sharing subscriptions with family or friends.
Set savings goals
Establish clear savings goals, whether it’s for a holiday, a new car, or an emergency fund. Having a target can motivate you to save more effectively. It is helpful to set aside your savings at the start of each month, instead of waiting to see how much you have left over at the end. Saving just £20 per month adds up to £240 at the end of the year, which can come in handy when Christmas expenses loom!
Choose the right savings account for you
Different savings accounts offer unique benefits and come with unique conditions. An Instant Access Account is perfect for emergency savings which you might need to withdraw at any point. An ISA, or Individual Savings Account, enables you to save up to £20,000 tax free, in addition to earning up to £1,000 of tax-free interest per year for people on the basic tax rate on your other savings accounts. There are various options for ISAs, including Instant Access, 180-day Notice, 90-Day Notice and two-year Fixed Rate ISAs. Parents can also set savings goals for their children with a Junior Savings account, perfect for keeping that birthday money safe.
Consider fixed-term accounts
If you can commit to saving for a specific period, explore fixed-term accounts that often offer better interest rates than regular savings accounts. Just ensure you won’t need to access the funds until the term ends, as there can be a penalty for withdrawing before then.
Use overdrafts wisely
If your account offers an overdraft option, make sure you pay attention to the terms and conditions. Ensure you understand the fees associated with going overdrawn and try to avoid relying on this option to prevent unnecessary charges.
Review your mortgage options
If you have a mortgage, consider reviewing your current rates and terms. By talking to a mortgage adviser or directly to your mortgage provider, you may find a product better suited to your current life-stage. For example, at esbs we offer a CIS or Construction Industry Scheme mortgage, an Agricultural Tie mortgage for workers with ties to the agricultural industry, and a Self-Build mortgage for those planning to build their own home.
Educate yourself financially
Take advantage of available resources and workshops. Learning more about personal finance can equip you with the knowledge to make better financial decisions. Our series of podcasts on savings, budgets, and overall financial health can be accessed here.
To apply for a mortgage you must be aged 18 or over. All applications will be subject to valuation, status and the Society’s Mortgage Conditions
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE