Discover what kind of saver you are and tips on how to upgrade your saving strategy with this fun, 5 question quiz.
*Keep note of your answers as you go – this will determine your result
Savings — what savings? The Free-Spender lives hand-to-mouth, meaning they spend money as soon as it comes in. These spenders are spontaneous, live in the moment, and have little to no savings to speak of.
Saving Tips for Free-Spenders
You don't let money rule your life, which is great, but be mindful that just one unexpected expense, such as a broken boiler or broken leg, could send you into debt. Perhaps it's time to start tracking your spending with a free app like Moneyhub or Snoop to get an idea of how much you spend in a month. This will then help you to set a basic budget. A simple budget will help you to prioritise your needs over your wants by pre-assigning your available money to specific categories before you've spent it elsewhere.
The Sporadic Saver has a savings account but isn't consistently putting money away. They use their savings account sporadically by adding random amounts every other month. One month they might save £100, but the next, they'll forfeit their saving to buy a new pair of trainers
Saving Tips for Sporadic Savers
You're conscious about saving, which is great, but be mindful that without a fixed goal and a consistent savings plan, you probably won't end up saving a substantial amount. Why not try automating your deposits in an untouchable savings account. An easy way to do this is to calculate your budget and figure out a reasonable, achievable number to save each month. Next, arrange your recurring monthly deposits accordingly.
The Goal-Getter knows exactly what they're saving for, and they have a plan. The Goal-getter usually has multiples “pots” of money, each assigned with their own goal — a dream holiday, a bathroom refurbishment, a new couch, etc.
Saving Tips for Goal-Getters
You're a Goal-Getter, great work! However, if you don't already have a pot dedicated to emergencies, you'd be wise to start one. It might not be as exciting as a ski trip, but it's a good idea to save for the unexpected too. Another way to bolster your savings is to set up autopayments to your sub-accounts.
For the Smooth Saver, saving has become second nature. This saver has automated systems in place for all their monthly bills and savings, which go off without a hitch each month.
Saving Tips for Smooth Savers
If you're a Smooth Saver, congratulations! your saving strategy has reached a level of proficiency and success, just remember to re-evaluate your monthly contributions on a regular basis and to adjust them according to any changes to your income and expenses. If you haven't already, perhaps you could move some of your savings to an account with better fixed interest rates.
Some might refer to Budget Masters as frugal, but to others, their Jedi budgeting skills are a marvel. Budget Masters are aware of every penny that enters and leaves their account/s and accommodates for every expenditure – right down to an ice-cream on a hot day. Budget Masters like to track everything, usually in a spreadsheet or some form of budgeting template.
Saving Tips for Budget Masters
If you're a Budget Master, keep doing what you're doing because this savvy strategy is gold. Just be mindful that there may be more efficient and/or creative ways to track your spending than the one you currently have in place. You can even use a dynamic and integrated tool like Nordigen, which can automatically update Google Sheets with your daily account balances.