How to save more money: Three simple tips to supercharge your savings pot
Do you love the idea of saving money but never seem to have the spare cash to do it? Over their lives, women typically earn less and save less than men – but expert saver Sarah Pennells wants to change that. The founder of the shares her top three tips with Woman’s Hour to help you supercharge your savings…
1. Look at the money you have and what you're doing with it
“I don't think that being in control of your money has reached the realms of being sexy, but it is very liberating,” Sarah Pennells tells Woman’s Hour.
“So, look at how much you have in your current account, whether you have an overdraft, what you're paying for it. If you have credit cards, what are you paying for those?”
2. Think big
“There's that phrase, ‘look after the pennies and the pounds will look after themselves’, and it is important to look after the pennies. But don't spend all your time focusing on them. I’d say ‘think big’. What will I retire on? How do I want my money to grow?
“And it isn't something you can only do when you're rich. So don't put off starting a pension until you think you can comfortably afford it, because that moment might be in 10 or 20 years’ time. Start with what you can afford. The same with investing, you can start with just a few pounds, see how you feel, leave the money there.”
3. Automate your financial life
“If you're employed, you'll probably be put into your employer’s workplace pension scheme - that's already done without you having to sign up for it. Stay in that scheme. And if and when you get a pay rise, try and sort it out so that part, or all, of that [extra] money goes into your pension.
“Set up a standing order so money goes automatically into a savings account the day after you get paid, so you don't see that money. And if you have debts like a credit card, then set up a direct debit so you ideally pay it all off if you can, but if not, pay more than the minimum.
“Once you've set these things up, they should just take care of themselves.”
Listen to Woman’s Hour‘s special programme: Why women need to talk about money. From the gender pay gap to sexually transmitted debt, we examine where things go wrong for women with money and how we might begin to fix the problems.
Woman's Hour is on ±«Óãtv Radio 4 on weekdays at 10am and at 4pm on Saturdays. You can catch up on all episodes via ±«Óãtv Sounds.
