Lloyds Bank says people ‘could save £700’ with simple method | Personal Finance | Finance
Lloyds Bank is encouraging people to use this useful tool to increase their savings, and it is available even to non-customers. The banking group, which includes Halifax and Bank of Scotland, provides a savings calculator that helps users estimate when they can meet their goals and how much they need to save to reach them.
discuss why it’s a good idea to use savings calculator, “You may be planning a big expense or just want the peace of mind that you have a financial safety net in place,” she explains.
He explains that no matter what your goal is, a savings account calculator can quickly show you how much you need to save each month to reach the goal and how long it will take to save the amount you want.
He continues: “You may also want to consider choosing between savings or a loan. If you can afford to wait, it often pays to take the time to save money for the things you want. While a loan is convenient, it can be more expensive, especially when you factor in interest, fees, and other expenses.”
The steps are simple. Just visit the website here to find the tool. From there, based on your circumstances, you enter:
- How much money have you already saved?
- Realistically, how much can you save each month?
- How long can you save in years and months?
For example, we decided to save £50 each month, starting from the £100 we had already saved. To keep it simple, we set a goal of saving for 12 months or a year.
After clicking ‘Calculate’ he said: “Based on these details we estimate you could have £700 by the time you top up your savings.” This is enough to help save money for a deposit, a summer vacation, or just to help build your emergency fund.
Separate advice states that if people want to increase their savings, a simple rule can help people budget and save better. He explains: “Knowing how much you can save or invest each month will help you plan for your next payday and your long-term financial future. 50:30:20 rule can help you get started.”
What is the 50-30-20 rule?
The 50-30-20 rule, or budget, divides your monthly after-tax income into three clear areas.
- 50% of your income goes to needs. This can cover anything from bills to groceries.
- 30% is spent on any request. Think about days out with your family, dinner at a restaurant, or any vacation plans.
- 20% goes to savings. This includes things like adding to your emergency savings fund or setting aside money for investments.
The 50-30-20 rule can be easier than detailed budgeting because it uses only three categories. This makes budgeting faster and less stressful. It also helps you balance your money between your needs, wants, and savings. You can read all about 50-30-20 rule here.
