Building a Brighter Future Through Savings

Saving money during a tough economy might feel a little counterintuitive, but it’s a crucial part of achieving financial security. Whether you’re planning for your future or preparing for unexpected expenses, having a savings pot (or two) is essential.

Building an emergency fund can provide a great sense of security. Having that financial cushion can help ease stress and allow you to handle unforeseen circumstances, like car repairs or appliance breakdowns, without resorting to debt.

Of course, saving isn’t only for emergencies; it can empower you to turn your aspirations into reality. Whether it’s a new car, home improvements, or educational pursuits, consistently saving can bring you closer to achieving your goals.

Setting up your savings

There are several types of savings accounts, and each has its advantages. It’s important to also consider that you can have more than one savings account. For example, you may choose to open one to build a rainy-day fund and another to save towards a specific goal. The different types of accounts available include:

• Easy access accounts, which offer the flexibility to readily withdraw money and could be ideal for short-term savings goals or emergency funds.
• Notice accounts, which could provide a higher return on investment in exchange for giving advanced notice before withdrawing funds. The notice period can vary for accounts, so these are best suited to those who don’t need instant access to their money.
• Fixed rate accounts, which offer a set rate of interest in exchange for locking away your money for a predetermined period, could be a suitable option for those seeking a guaranteed return on a lump sum that they won’t need in the short term.
• Cash ISAs, which allow you to save up to £20,000 tax-free annually. This can make them a particularly attractive option for larger or long term savings goals, such as a first home or retirement planning.

Building your savings

Everyone’s savings journey is different, so it’s important to understand your goals and be realistic about what you can save. Here are some simple steps to get you started:

1. Evaluate your budget: Identify your income and expenses to determine how much you can realistically save each month. Also consider any expenses you can cut back on – for example, unused subscriptions or non-essential purchases.
2. Set goals: Having a clear purpose for saving helps you stay motivated. Whether it’s a once-in-a-lifetime trip or a new bathroom suite, having an idea of what you’re saving towards can help you stay on track.
3. Choose the right account: Consider your access needs and interest rate preferences, as some account types may be better suited to your savings goal than others.
4. Start small and save gradually: Even small, regular deposits can accumulate significantly over time. Every penny saved is a step towards a brighter financial future.

Why save with a building society?

Building societies offer a unique and beneficial environment for savers. Unlike banks, which are owned by shareholders, building societies are member-owned. This means profits are reinvested into the business, which ultimately benefits members. Additionally, building societies are deeply rooted in the local community, with products that support local causes.

One such example is an Affinity Saver. This account enables you to save while simultaneously supporting a chosen charity. With Marsden Building Society, savers can choose to support either Trinity Hospice in Blackpool, Pendleside Hospice in Burnley, the North West Air Ambulance or the

Marsden Building Society Charitable Foundation.

Through the Affinity Saver, the Society donates 0.50% of the total average balance of all accounts linked to the chosen charity each year. All donated funds come directly from the Society, making it a fantastic way to contribute to a cause you care about while earning interest on your savings.

The most important thing to remember is that developing a savings habit is an investment in your future. Whilst saving money takes discipline, it’s essential for weathering tough economic times and achieving your financial goals in the long term.