If you’ve managed to save a decent chunk of money in lockdown, well done.
While we may have saved cash on everything from ditching our commutes to cutting back our outside-of-the-house entertainment, there have been plenty of new forms of temptation, such as the endless pull of online shopping and takeout food orders to reduce the drudgery of cooking.
So, as we said, well done if you have managed to save money. That’s impressive and to be applauded.
Hannah Wright, 27, told us she’s been saving loads more money in lockdown: ‘I’ve been saving more in lockdown than I would usually do, and I want to use my savings towards buying my first home in the next few months.
‘I’ve been working full time from my mum’s throughout lockdown (I work for the Government so it’s been very busy!) and I’ve been able to save money by not commuting or buying expensive meals in town.
‘I also usually spend a lot on concerts and live music each month, so that expense has completely disappeared!
‘Saving what I can means I have accumulated just over £5,000 since April, which I’ve put into my Moneybox Lifetime ISA and a Stocks and Shares ISA account with them.
‘The 25% Government bonus on the Lifetime ISA will be a big help towards buying my first home, but with the pandemic’s effect on the industry mortgage lenders are now asking for a 15% deposit, so I will have to save a bit longer before I can hit that target. I’ve just got a promotion, so hopefully going forward I can save a bit more!’
Not all of us will be coming out of lockdown with a promotion, of course, and for those who have been able to put away a nice cash cushion, the easing of lockdown might be prompting some concerns.
You might be feeling a touch nervous about returning to old overspending habits as we come out of lockdown and things go back to ‘normal’.
Don’t panic. We spoke to the expert team at Moneybox for their essential tips on keeping up those good saving habits post-lockdown. Here’s what they said.
Start small
Don’t try to give yourself an outrageously large target to save – even if it’s the same amount that you’ve been saving while in lockdown.
As you return to the office and start going to pubs and restaurants again, it’s just not realistic to think you can save the same amount you were putting away in lockdown.
Adjust your expectations and start small to make sure you don’t immediately get demotivated by having to move money back over from your savings account.
Moneybox’s Mille Winge recommends starting with round-ups – when you round up your spends to the nearest pound and put the difference straight into your savings.
They are plenty of apps that will do this for you (including Moneybox, obviously, but Chip and Plum do the trick, too), so that you can save without really noticing.
Pay yourself first
Make savings a priority by moving the amount you want to save over to a dedicated account on payday.
‘It may be tempting to go on a spending spree now that shops are re-opening, especially if you have been lucky enough to be saving more than usual during the lockdown,’ says Mille. ‘However, an important rule of thumb when it comes to saving is to always pay yourself first.
‘When Moneybox users were asked about their biggest money lesson learned from lockdown, a majority said it was realising the importance of having emergency savings.
‘We recommend setting up a weekly direct debit, or a payday boost to lock away some savings and avoid the temptation of spending it on anything else.
‘This is a great way to build a savings habit without making huge changes to your lifestyle.’
Work out your goals
Just aimlessly saving can mean you love motivation fast – you need something concrete to work towards.
Are you saving for a car, a house deposit, a holiday?
Once you’ve worked out some concrete goals, you can adapt your saving techniques and choose the best savings account to fit in – and you’ll know exactly how much to save to meet your targets.
Keep an eye out for savings schemes
Have a search around for any saving accounts that can benefit you.
Mille says: ‘It may sound too good to be true, but depending on what you are saving for, there are some great schemes out there that could actually give you free money.
‘If you’re saving for your first home for example, you can get up to £1,000 every year from the government with a Lifetime ISA. With the Help To Buy ISA coming to an end last year, the Lifetime ISA is now the only product available to help young people get on the property ladder, so for the first time buyers out there this isn’t one you want to miss out on!’
Think long-term
Not to be a massive downer, but have you ever looked into your pension? It’s worth considering this as part of your plans to save for the future.
‘Although retirement might seem like a lifetime away for many of us, it’s never too early to start thinking about your pension,’ says Mille. ‘A good place to start is to find any retirement savings you may have already built up.
‘This might sound obvious, but do you know how much money you have sitting in old pension pots? The ABI** estimates that around £19.4billion worth of pensions in the UK are “lost”, as people change jobs and lose track of old workplace pensions.
‘With 25% government tax relief on your pension contributions available each year – can you really afford not to find yours?’
If you want more tips and tricks on saving money, as well as chat about cash and alerts on deals and discounts, join our Facebook Group, Money Pot.
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Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
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source https://metro.co.uk/2020/08/25/how-make-sure-keep-saving-money-come-lockdown-13173788/
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