Why having some savings is so important
Fri 05 May 2023
The last year has been tough financially for nearly everyone, leaving many people short of disposable income and struggling to make ends meet. We get that the idea of having savings might seem laughable when money is tight. However, the cost of living crisis is rolling on and we can’t simply wait until it’s over.
Having even a small amount of savings in place can bring a number of benefits, so we need to consider how we keep our savings on track despite these tough conditions.
Managing your money
Understanding where your money goes each month is key and this is where having a budget can help, allowing you to track income vs expenses. If you’re not sure where to start don’t worry, read our article on making the most of your money for some helpful information on budgeting.
How much do you need to save?
Basically, whatever you can afford. Some people advise a fixed percentage of your salary, some say you need to have 3-6 months’ worth of salary in savings but that’s not necessarily the best way to look at it.
When it comes to monthly savings, you could work out how much money goes on the essentials in life – rent or mortgage payments, those unavoidable costs such as your washing machine breaking down, or an unexpected car repair. It's important to consider the different expenses you could face so that you can prepare yourself for the unexpected.
The amount you can afford to save depends on your spare income and you won’t know how much that is until you have worked out your actual budget.
What if it’s not a lot?
Savings can provide a financial back up for life’s uncertainties and it’s surprising how saving small amounts can soon add up. The table below gives you an idea on how your savings could build up.
|If you saved...||Year 1||Year 3||Year 5|
|£10 per month||£120||£360||£600|
|£30 per month||£360||£1,080||£1,800|
|£100 per month||£1,200||£3,600||£6,000|
Helping you to save
We aim to help the Police family lead a financially healthier and happier life. That’s why we’ve partnered up with No1 CopperPot Credit Union to bring you a range of their savings accounts.
Whatever you're saving for, joining No1 CopperPot Credit Union allows you to become a regular saver based on manageable amounts of at least £5 per month. Savings can be taken directly from your payroll each month (where available) meaning there’s one less thing to think about.
Important things you need to know:
To be eligible for a Member Account you must be aged 18 or over and a serving or retired Police Officer, Police Staff, Police Special or PCSO.
PMGI Limited trading as Police Mutual acts as an introducer for Number One Police Credit Union Limited who provide a range of savings accounts for members. This introduction is not regulated by the Financial Conduct Authority.
Type of article: Articles
Category: Saving my money
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