The term ‘savings’ can mean different things at various stages in your life, but it is ultimately the process of putting money aside for future use. That could be to buy something like a home or a car, or just for a rainy day or as a safety net should something change in your circumstances. 

Whatever ‘savings’ means to you, it is something that we should all have. Even if you put away small amounts each month, it’s the routine of putting money aside, no matter how much, that is key to helping you maintain this habit throughout your life. 

So, if you haven’t started already, follow our step-by-step guide below and enjoy seeing your savings grow.  

STEP 1: Decide the amount you can afford to save

STEP 2: Decide on the savings account that works best for you

STEP 3: Find the best rates

STEP 4: Keep tabs on your savings

Step 1: Decide the amount you can afford to save  

Decide the amount of money you can afford to save, and the frequency – this could be weekly, monthly or a lump sum of money from something like a bonus. You can do this by assessing your income (FinFit’s MoneyView Dashboard can help with this) and spending and see where you have room to save. 

Step 2: Decide on the savings account that works best for you

Decide what type of savings account you would like. There are many types to choose from such as a traditional savings account, a high-yield savings account, a money market account, a certificate of deposit (CD), and more. Each account type has different requirements, pros, and cons. Do your research to determine the best type of account for your individual needs. 

Top Tip: If you choose to use a savings account online, most will allow you to name the account. Why not choose something that will stop you from withdrawing this money on a rainy day – like ‘new house fund’, ‘emergency only’, or even ‘do not touch! 

Step 3: Find the best rates

Check out the best rates available. There are numerous websites available where you can research the best rates available. Most of the time you can apply and set up your account online in the comfort of your own home. 

Step 4: Keep tabs on your savings

Regularly review your savings to check you continue to receive the best rates and to see if you can afford to increase the amount you are saving. Watch your savings grow and feel comforted that you have a financial ‘buffer’ should something change in your income.