Following on from our last newsletter where we asked if you needed money makeover, have you taken the steps to look at what you have coming in and what you have going out? Did you identify where you were spending your spare cash and have you made some small changes so that you can increase the spare cash that you have? If the answer is yes then you have done the hard part but we realise you may need some guidance on the best ways to save. See below for step 4 will help you with the looking at the different ways you can save.
Look at opening a savings account with your existing bank. As you are already a customer this will be simple for you to do and you will most likely be able to do this on your mobile banking app. Once you have a savings account open you can set up a standing order on a regular basis to get you into the habit of saving. Your bank may not offer you the best rate on your savings but it is a simple and easy way to get you into the habit.
Once you get into the habit of saving, an alternative is something like Hyperjar, particularly if you use Lidl for your weekly shop. It is suitable for those who save and budget ahead for the coming months. An account with Hyperjar allows you to deposit money with certain retailers (or merchants as Hyperjar refer to them) in advance (like Lidl) and earn interest on the balance.
You will be provided with a smart Prepaid MasterCard that will debit the relevant “jar” when used. In contrast to companies like Klarna and ClearPay, the ethos of the app is “pay now, buy later” rather than “buy now, pay later” and opening an account will not affect your credit score.
Due to lockdown eating out is off the cards at the moment but you can start to set aside funds with Bella Italia (a merchant) to enjoy a celebratory family meal once lockdown has been lifted.
Please note that once funds are added to a merchant jar, they cannot be redeemed as cash, so it is best to view them as gift cards which gain interest!
For more details check out this link…..Hyperjar
Hopefully, this will give you a bit of guidance on how you can start to save money and the different ways in which you can do this.
We know that it not easy to get going but if you have been able to follow the steps we have shared with you then it will enable you to potentially avoid taking out credit when your rainy day happens, and save you even more money on the interest that you would be paying on the credit!
By making some small changes you will be starting your money makeover and you will be putting yourself in a better position financially.
We hope this has given you some inspiration to look at budgeting and start saving….. good luck!