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Financing life's goals

Saving is a great skill to have if you’ve got big life expenses ahead or have a particular goal in mind. Yes, it can be tricky but there’s also a lot you can do to hone your skills, develop solid habits and set yourself up to crush your savings goals.

Why save?

There are many reasons for saving, and your goals and motivations may be very different to those of others. Take time to think about your personal circumstances and what you want to achieve because saving is usually easier if you know why you’re doing it. Here are some common reasons:

 

Life goals and milestones

Life has many significant milestones and most of us have big goals and dreams for ourselves and our families too. Examples include buying a first home or car, going to university, starting a business, funding a dream wedding or gap year or starting a family. These are usually too expensive to pay for out of everyday budgets so saving up over time is the key to financing them.

Milestones in numbers

  • £60,000 – the student loan price tag for a typical three-year university course   
  • £288,136 – the average cost of a home for a first-time buyer  
  • £166,000 – the average cost for a couple to raise a child to 18 (£220,000 for a lone parent) 

 

The unexpected and emergencies

This is the rainy day fund that creates a buffer when things don’t go according to plan. It could be a broken boiler or car, time away from work through unemployment or illness, or a relationship breakdown. Having savings can allow you breathing space, should give you more choices and can help prevent unexpected costs from spiralling into debt.
  • Experts suggest you should have enough money in your emergency fund to cover essential expenses for between 3-6 months. Despite this, a third of UK savers say they would struggle to cover expenses for a month if they lost their main source of income. 

£17,120 – the average amount an adult in the UK has in savings

 

Peace of mind

Money worries can have a huge impact on wellbeing so having savings and well-established saving habits can help you feel in control and give you peace of mind. This isn’t just about building an emergency fund; knowing that you’re making progress towards milestones and goals can boost wellbeing too.

  • Almost nine in 10 people in the UK say money worries keep them up at night 
  • 46% of people in problem debt have mental health problems and 18% of people with mental health problems are in problem debt 

Here's how we can help

 

The future

You may not know what you want your future to look like and it’s tricky to save for an abstract and often faraway time. But putting away money now will help build a nest egg and give you more options further down the line.