Building a Brighter Future
When you’re living paycheck to paycheck or facing debt, the idea of saving money might feel out of reach. But even small steps toward saving can help build security and peace of mind over time. No matter your income level, there are ways to start saving—even if it’s just a few pounds a month.
This guide explores different types of savings suited to those who are struggling financially but want to plan for a better future. We’ll also share practical tips to get started, however tight your budget might be.
Why Save When You’re Struggling?
It might seem counterintuitive to save when you’re trying to keep up with bills or pay down debts. But saving, even in small amounts, can:
- Protect you from unexpected expenses (like car repairs or a broken appliance)
- Reduce stress and anxiety about money
- Help you break the cycle of borrowing
- Give you more control over your financial future
Think of savings as a safety net. Even £1 or £2 a week can add up—and the habit of saving is just as important as the amount.
1. Emergency Savings: Your First Financial Cushion
What it is: A small pot of money set aside for emergencies like urgent car repairs, a surprise bill, or losing your job.
Why it matters: Without an emergency fund, you’re more likely to rely on credit cards, overdrafts, or payday loans when something unexpected happens.
How much to aim for: Start small—£100, then build up to £500 or £1,000 over time.
Where to keep it: A separate easy-access savings account or a savings pot in your banking app (like Monzo or Starling).
2. Savings for Specific Goals
What it is: Money saved for planned needs—such as school uniforms, Christmas gifts, or a short family break.
Why it matters: Planning ahead helps spread the cost and avoid borrowing when those times come around.
How to do it:
- Set up separate savings pots or envelopes for each goal
- Decide how much you need and by when
- Put away small amounts regularly (even £5 per week)
3. Long-Term Savings for the Future
What it is: Money saved for big goals like buying a home, starting a business, or retirement.
Best options:
- Help to Save (for people on Universal Credit or Working Tax Credit): The government adds 50p for every £1 you save—up to £1,200 over 4 years.
- Lifetime ISA (if you’re aged 18–39): You can save up to £4,000 a year and the government adds a 25% bonus—great for first-time home buyers.
Important: Don’t worry if you’re not ready for long-term savings yet—start with short-term goals first.
4. Debt Repayment as a Form of Saving
It may sound odd, but paying off high-interest debt (like credit cards or payday loans) can be one of the best ways to “save” money. Every pound you pay off saves you money in future interest charges.
If you’re juggling debt, consider:
- Speaking to a free debt advice service like StepChange, Citizens Advice, or National Debtline
- Asking your lender about payment plans or breathing space schemes
- Prioritising debts with the highest interest first
5. Savings Through Benefits and Support Schemes
If you’re on a low income, check whether you’re getting all the help you’re entitled to. Every little extra can go toward savings.
- Check benefit eligibility at Turn2us
- Council tax reductions, free school meals, and energy grants can free up money
- Use Healthy Start vouchers or food banks if you’re struggling with food costs—these services exist to help, not judge
How to Get Started With Saving
- Use a budget planner to see where your money goes (the MoneyHelper website has a great one)
- Round up spending: Some banks round up your purchases and save the difference
- Challenge yourself: Save any £2 coins, cancel unused subscriptions, or do a no-spend weekend
- Make it automatic: Set up a standing order for a small amount each week—even £1 adds up
Final Thought: Every Pound Saved is a Step Forward
You don’t have to be rich to start saving. And you don’t need to save a lot at once. What matters most is getting into the habit and believing that a better financial future is possible.
There’s no shame in starting small—only strength in starting at all.
Helpful Resources