The amazing benefits of saving even a small amount of money, especially for low-income families

Saving money can be really hard, but it can have a dramatic boost to your financial security and well-being.

Saving money can seem difficult, especially if you already have tight finances. But setting aside even a small amount each month can have a big impact.

This is especially true for low-income families, even if it sometimes doesn't feel like it at first. Around 25% of the UK population – 9 million people – have no savings at all.

The benefits of saving small amounts

Saving regularly, even if it's just a few pounds a month, isn't just about saving money. It can greatly improve your mental well-being.

When you save, you don't just build your bank balance; and you get peace of mind.

Academics at the University of Bristol found that people who are grateful often feel less stressed about money and are more satisfied with their lives overall.

I think you know in the back of your mind that you can handle unexpected expenses with a little cushion of savings. This reduction in stress can lead to:

• Better sleep
• More happiness
• A powerful sense of control over your life

This is it habit of saving, not really value maintained, that brings benefits – which is why even a quid here and there can do the trick.

Impact on low-income families

The savings benefits are even greater for low-income families. Regular low-income savers generally report similar levels of life satisfaction to high-income non-savers. It's also been shown in studies that having a little money to lose can actually make you happier than a lot.

Regular savers are less likely to need to borrow money at high interest rates, which reduces financial stress.

Practical tips to start saving

Starting to save may be easier than you think. Try this:

• Set small goals for yourself: start with a manageable goal, like saving even 1p, or £1 or £5 or £10 a month. Once you get used to it, you can gradually increase this amount.
• Use automatic transmission: set up automatic transfers to your savings account every month. This way, money is saved before you realize it's gone or you can do it even more automatically with an app that can do it all for you.
• Join income saving programs: If your employer offers you a salary saving scheme, join it. These plans make saving easy by deducting part of your income directly from your savings, so you don't feel like you're missing out.

Saving money, even in small amounts, can greatly increase your well-being and financial security, especially for low-income families. Start small, stay consistent, watch your savings grow, and improve your health.