Having even a small savings pot is important for dealing with costs you can predict and unexpected costs, such as a broken washing machine. It helps to reduce 'bill shock' and reduces the need to rely on loans and other debt that will cost you more.
Savings will also be important if you expect to transferred to Universal Credit as benefits payments will change from weekly to monthly in arrears.
Saving on a tight budget can be a struggle, but there are tips that can help:
Set yourself a goal (for example, to have saved £30 by the end of the month) – research shows that people who set themselves a savings goal do better than those who don’t.
Work out how much you can afford to save each week or month. Our budgeting page will help you to do this.
- Speak to your bank about automatically transferring a set amount into your savings account each week or month or set a Standing Order to take money out of your account on payday. If you don't see the money, you won't be tempted to spend it.
You can find more information about different ways of saving and tips for setting achievable goals on the Money Advice Service website.