The easing of restrictions has predictably led to increases in consumer spending after more than a year of ‘accidental’ saving at home. A combination of the Euros, some travel borders reopening, and indoor dining (hurrah!) has been what we needed this summer, but as autumn approaches our minds begin to think about ‘back to reality’, including financial realities.Saving through payroll
When it comes to saving, a lot of it’s about making it automated. Similar to forming a habit, setting up something to happen automatically creates a habit but without the difficult discipline or need for reminders. Payroll savings with Cushon, from £10 a month, is an easy way to get financially organised again. You can control how much you wish to save and without any future action from you, it gets deducted each pay period creating a valuable savings habit. By adjusting to your new monthly take-home pay, you can spend confidently in the knowledge you are saving with minimal effort, and you’ll hardly notice it!Rainy day funds
No these aren’t for when it’s raining, and if they were we’d never have anything in them! Whether you have a rainy day fund set up already or are looking to begin one, be sure to prioritise that pot by regularly paying into it and not dipping into it for anything that wouldn’t be considered a rainy day expense. How you define a rainy day expense is up to you, but typically a rainy day fund is used for a short-term, unexpected costs such as a large bill or household repair.Find your comfort level
It’s important to be comfortable about what you’re spending and saving to prevent it from becoming a source of stress. The link between our mental health and finances is strong and is important to monitor. Spend some time considering what your current saving style is, and does it serve you properly? Chat to one of our Cushon consultants if you want information on the different style and assets out there. There’s a free 121 booking link at the end of this page.Know your products
How can you utilise what you don’t know? There are products out there which could be tailored for your saving goals, so here’s a quick run through of what you could be utilising.
ISA – these are popular because they provide a tax-free wrapper for your money. Everyone in the UK over 18 gets an annual £20k ISA allowance, which can be split across one cash and one stocks & shares ISA as they wish. Perfect for general savings!
Lifetime ISA – if you’re looking to buy your first home, the government can help you get there. The Lifetime ISA allows you to save up to 4k per year, and for whatever you put in there’s a 25% bonus applied.
Junior ISA – parents & legal guardians listen up! The sooner you know about this one the better. You can save up to £9k per year, per child into this. It’s locked away and then as of their 18th birthday it becomes available for them to control and withdraw. Other relatives can even contribute for birthdays!
Pension – don’t overlook the importance of these! Speak with your employer about your pension scheme, employers have to contribute into your pension as well. It’s worth finding out if there’s extra money you could be getting each month.
They can’t give financial advice, only general information.