Spare Change to Big Gains: The Ultimate Savings Guide
Your savings are what’s left over from your disposable income once all other expenses have been accounted for. Essentially, it’s the money you put away each month—unless you decide to spend it elsewhere. Without a clear budget, the amount you save may fluctuate.
🏦 Why Saving Matters
Having savings is crucial because you never know when you’ll need extra cash. Studies show that nearly 1 in 3 UK adults have less than £1,000 in savings, leaving them vulnerable to unexpected expenses. Whether it’s for an emergency fund, a big purchase, or future investments, having money set aside gives you peace of mind.
Some common savings goals include:
- Emergency Fund – A financial cushion for unexpected situations like job loss or medical expenses.
- Big-Ticket Purchases – Saving for a holiday, a house deposit, or a car.
- Investing for the Future – Growing wealth through stocks, pensions, or property.
🚨 The Importance of an Emergency Fund
It’s recommended to have around three months’ worth of expenses in savings to cover emergencies, but this depends on your individual situation. Once your emergency fund is in place, you can focus on other financial goals, knowing you have a safety net if needed.
⚖️ Savings vs. Paying Off Debt
At Updraft, we always talk about the importance of paying off debt, especially high-interest loans or credit cards. However, we also understand the need for a financial buffer.
💡 Our approach? Build up some emergency savings first, then focus on tackling high-interest debt. This ensures you have a financial cushion in case of unexpected expenses, such as job loss or medical bills, reducing the risk of relying on credit cards or loans during difficult times. Once this safety net is in place, you can then aggressively pay down debt without fear of financial setbacks. This ensures you’re protected while also working towards financial freedom.
📉 How Updraft Can Help
If you’re juggling multiple debts, Updraft can help consolidate them into one manageable repayment—often reducing your interest costs. Users say this makes their debt less overwhelming and helps them pay it off faster. (Subject to status & affordability. When consolidating existing borrowing, you may extend the term of your debt and increase the total amount you repay.)
💡 Simple Ways to Build Your Savings
- Start small, start now – Even saving a few pounds regularly adds up over time.
- Set up a direct debit – Automatically transfer money into a savings account each month.
- Use a high-interest savings account – Banks reward you for keeping money in savings.
- Make savings less accessible – Keeping savings in a separate account reduces temptation to spend.
- Try round-up savings apps – Many banks offer features that round up purchases and save the spare change.
- Set savings challenges – Link savings to lifestyle habits, like saving £1 for every time you go for a run.
🚀 Final Thought
Want to take control of your money? If you’re looking to consolidate credit card debt and cut down on high interest, download the Updraft app today.
Representative example
25.9% APR representative based on a loan amount of £10,000 over 60 months at a fixed interest rate of 20.9% p.a. This would give a monthly repayment cost of £283.47 per month, with a total cost of credit of £7,017.84 (includes loan fee of £500) and a total amount repayable of £17,017.84.
All figures are representative, the rate you are offered will depend on an assessment of credit worthiness and affordability. Terms and conditions apply.