Why should I keep saving money?

This is probably something that no doubt crosses your mind fairly regularly! 

If you have either opened a savings plan for yourself, or your child or grandchild, you have already taken a very important step in helping to secure your, or their, financial future.

However, whilst opening a savings plan is a very important first step, actually continuing to save regularly should now be the priority.

That goal of buying a house or funding an extension or a wedding, providing a nest egg for a child or grandchild, or even building a financial safety net to protect against difficult times will only happen with a consistent saving habit. That £50 a month you put into a cash ISA but then the following month slowly transfer it back over for spending money isn’t going to get you there (we’ve all been that type of saver!). 

That’s why saving with Foresters can help for the mid-long term.

Don’t lose that all important focus
Since the pandemic, the UK population’s view on money and savings has no doubt had a reality check.  The crisis certainly made us think – from the early fears of reduced income from the furlough scheme, and the threat of job losses, to the ability, for some, to fund a savings plan as we weren’t able to spend as much with lockdown restrictions in place. Whilst we hoped for a quick economic recovery from the pandemic, the reality is that we have emerged into a cost-of-living crisis with record inflation levels. For some, this will be difficult to bear. 

These more recent circumstances may have made you consider your savings pot again to ensure that you are covered, should you fall on difficult financial times – whatever the reason.

Whilst many were able to increase their savings habits by putting more money aside during the pandemic, continuing these savings habits to build up a financial safety net will require that all important focus – perhaps more than ever before in the current economic climate.

Switch to a more affordable way of saving
Whilst many households may be benefitting from a reduction in travel or childcare costs now that regular home working is widely accepted, new pressures on household income have emerged, from higher food prices, to increasing gas and electricity costs – these may all be eating into your available income.

This may mean that saving money is harder. But, don’t forget that even if you are not able to save the larger sums you could during previous years, such as in lockdown, saving little and often is just as important.

Savings plans such as the ISA, Junior ISA and Lifetime ISA allow you to pay in either lump sums or regular amounts by a monthly direct debit, so why not set up an affordable monthly payment into your plan just after pay day and give yourself the opportunity to continue to save for the future.

Or, there are affordable regular savings plans such as the Tax Exempt Savings Plan, where you can save £25 per month for 10 years, that can help you to put money away easily, and importantly keep it out of easy reach, to ensure you are planning for your financial future.

Making sure your savings work hard
During the pandemic and beyond, here at Foresters Friendly Society we have seen a significant increase in new members joining us to place their hard earned money into savings plans for the mid-long term at the same time as existing members paying more into their savings plans.

The plans we provide at Foresters pool savers’ money in a with-profits fund which invests in a variety of assets for the mid-longer term with the aim of providing a higher potential return than their cash-equivalents, like Cash ISAs. This is another important consideration with record inflation levels currently at play. Inflation essentially means that your money won’t have the spending power it does today in the future unless its saving return is able to compete with the inflation rate.

But, what if I have to dip into my savings?

Should you fall on hard times, or just have a spell when you need a bit more money for the day to day costs of living, then this is where your more accessible cash savings pot can come in handy.  You might want to consider taking some money from Cash ISAs or bank accounts, if that still leaves money in rainy day funds, rather than to realise losses from any investments you hold.

However, if you are saving with Foresters, we may be able to provide financial assistance in other ways. Each year we support our members with over £1million in the form of discretionary grants. These grants can assist during times of hardship such as loss of income, or to help cover large, unexpected bills that may place financial pressure on households, as well as helping to provide some financial assistance for things like a trip to the dentist or opticians.

Save with Foresters
As we navigate through the current cost of living crisis, it is increasingly important for savers to continue to build a financial cushion to ensure they have future security should it be needed.

Plan returns are not guaranteed and will depend on the performance of our Order Insurance Fund and how we decide to distribute any profits. Capital at risk. The membership benefits we provide aren’t regulated by the Financial Conduct Authority or the Prudential Regulatory Authority, and are regularly reviewed by us to ensure they are relevant to our members.