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Saving money can be described as income not spent, or even the deferral of consumption (i.e. not buying stuff).


Ways of saving can include putting your money aside in a jam jar, a savings account, an investment, a pension, a mutual fund or even under your mattress in cash.


The act of saving can also involve reducing your own or your households expenditure, such as monthly costs on electricity and gas bills, phone and broadband bills, water and sewage bills, council tax payments, and food shopping. It can also involve the reduction of non essential spending such as days out, meals out, takeaways, trips to the pub, shopping trips to the mall, or any other kind of random or general expense. 


When we think of saving in respect of our "personal finance" we are generally referring to the very low-risk preservation of money as opposed to investments. These low risk saving vehicles would be products such as a cash ISA, a child's savings account or a cash deposit account, and whilst these accounts may be safe in respect of not losing your savings capital, they won't make you much cash either in todays very low interest environment. For the potential of higher returns  you need to move towards investing your money, which involves some risks.

Saving and savings

Saving can be described as the process of not spending your income or assets, by either not spending anything at all (forgoing the item) or by getting the item at a lower cost.


Savings can be viewed as the result of "saving" insofar as each time you make a cash saving, £1 here, £10 there, £25 elsewhere, this cash is put somewhere, as described above, and that cash value increases, so you can then refer to your savings as a pot or account of £100, or £500, or more.


This slight difference can be misunderstood by many, but it is worth being clear about which is which.

We describe many ways to save money in this section, and how to increase your overall savings into a useful sum of money.

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Saving Money 


You can save money in several different ways. The most obvious, and easiest is simply not to spend it in the first place, but this is not always possible. Even on essential purchases, good savings can be made by knowing the tricks of the trade.

Savings Accounts


All savings accounts have the same overall purpose of trying to increase your money by the payment of “interest”. Interest simply being the “reward”, for allowing the bank to look after and use your money. 



In order to save money, you need to create a budget and identify how much you can realistically save each month. You must stick to your budget robustly, which will take discipline and determination.