It’s no secret that saving money can be a difficult task for many. We’ll be looking at whether society has made it easier or harder for us to save money and why this could impact us in the future.
Whether you’re wanting to build your credit through saving and spending correctly, you must be able to save comfortably and responsibly, whether it’s easy or difficult.
Your savings targets may be dependent on the current state of the economy or how well-equipped you already are financially.
Rise of Inflation
With the rise of inflation set to continue in the UK and slowly decline, it’s predicted to make saving a little more challenging. The personal savings rate has been falling rapidly, with a significant number of adults having less in their savings pot than in previous years.
However, this hasn’t stopped people’s desire to save their money where possible. Many Brits are hoping to increase their savings, build emergency funds and pay down credit card debt over this next year.
Challenging times for young people
The harsh reality of living costs in the UK is starting to make young people wonder whether saving for the future is worth it right now.
With varying factors over the years having an impact on our economy, such as the pandemic, climate crisis and the ongoing war between Russia and Ukraine, saving for the future almost seems like a risky investment.
Many young people have now decided to cut their losses and spend their hard-earned cash on living life to the fullest. With the future looking bleak, why would they want to continue saving for it?
Saving isn’t impossible
Whilst the challenging economy will certainly have an impact on savings, that doesn’t mean it’s entirely impossible to save! There are plenty of ways to improve your savings, especially by setting yourself financial goals.
Making small moves such as using a budgeting app or consolidating your accounts into one bank for easier management can help you feel like you’re more in control of your finances.
Drawing up a monthly budget can also help you identify how much money you’ll be left over with each month. Try using various budgeting methods, such as the 50/30/20 method.
This is where 50% of your monthly income goes towards bills and other fixed expenses, 30% goes towards your everyday spending and luxuries, and 20% goes into your savings.