About us
Call us: +44 1632 960212

Myths and Facts: Savings Explained

Having a pot of savings provides not only longer-term financial security but also piece of mind – Our team of experts have listed some of the main myths and facts around savings which we hope you find useful.


Myth 1 – I need a Large ‘Rainy Day Fund’


Whilst many will agree that having a minimum of three months savings for essentials is crucial – every little helps with unexpectedly large bill and can make life that little bit easier.


Myth 2 – You Need a Large Income to Save


This is false – even if you can save a small percentage of your monthly income you can build a useful fund. Even if it means trimming a limited income you can still save – little and often quickly add up.

Myth 3 – You Should be Debt Free Before you Start Saving


Saving isn’t binary – you can both save (as much as you can afford) and reduce debts, a little planning at the beginning of each month will ensure you can save and get your debts down.


Myth 4 – I need to Save 10% of my Monthly Income


Well firstly you can save as much or as little as you can afford – there are no set levels of savings to consider but setting up an automated payment to a separate account will help.


Myth 5 – You need to Save Electronically to be Secured


Digital transactions are certainly easier and allows you to keep a record but so long as you set a monthly, affordable level of savings you can always bank a lump sum when required. It is worth noting also that many bank and savings accounts offer cash back and other incentives.


Myth 6 – If I cut Expenses I can Afford to Save


Saving is a strategy – you can cut expenses which may well free up funds to invest  but you should stick to your plan – if it means cutting expenses then you can save.


In the current climate it is important to have additional funds to mitigate any unexpected or planned expenditures – the key, however, is having the right strategy that is both affordable and sustainable.