Saving isn’t just good for your bank balance—it’s good for your mental health too. Recent findings from UK Savings Week highlight the link between regular savings habits and improved life satisfaction, particularly for low-income savers¹. By creating a savings routine, you can build financial resilience, reduce stress, and enjoy greater peace of mind. 

Savings and life satisfaction

Research has consistently shown that financial wellbeing is closely linked to mental wellbeing. UK Savings Week revealed that individuals who regularly save money, even in small amounts, report higher levels of life satisfaction. This is particularly true for low-income savers, who benefit the most from having a financial safety net.

Saving regularly creates a sense of control over your finances, helping you feel more secure and less anxious about unexpected expenses. Knowing you have money set aside can alleviate the worry of life’s uncertainties, allowing you to focus on your goals and enjoy the present. 

Small steps, big impact

You don’t need to save large sums to make a difference. Small, consistent contributions can add up over time, especially when combined with the power of compound interest.

For example, saving just £50 a month could grow into a substantial amount over a few years, providing a financial cushion for emergencies or future plans. 

1. Create a budget: Start by understanding your income and expenses. A clear budget can help you identify areas where you can cut back and redirect money into savings.
2. Automate your savings: Set up a standing order or direct debit to transfer money into a savings account each month. Automating the process removes the temptation to skip savings.
3. Set specific goals: Whether it’s saving for a holiday, building an emergency fund, or preparing for retirement, having clear goals can keep you motivated and focused Prioritise an emergency fund Aim to save three to six months’ worth of essential expenses to cover unexpected costs, such as car repairs or medical bills.
4. Use budgeting tools: Apps and online tools can help you track spending, set savings goals, and stay on top of your finances.

The psychological benefits of saving

Having a savings habit doesn’t just improve your financial resilience—it also has psychological benefits. Saving money provides a sense of achievement and control, reducing financial stress and improving overall wellbeing. Research shows that individuals with savings are better equipped to handle unexpected financial shocks, such as job loss or medical emergencies. This peace of mind can lead to better sleep, improved relationships, and a greater sense of optimism about the future.

We’re here to help

If you want to start building a savings habit or need advice on managing your finances, our advisers can provide personalised guidance. Get in touch today to take the first step towards a healthier financial future.

¹ Reference: UK Savings Week