WHETHER IT’S A home, a car, a holiday, or whatever you’re having yourself, most life goals require saving some money.

Very few of us are fortunate enough to have enough cash to hand to buy whatever we want. Most of us have to do the graft of putting some money aside out of our salaries and being patient.

Of course, that’s much easier said than done, and many of us don’t find it easy to save money, especially if we’re only just starting out.

That’s why we’ve got expert advice from AIB on how to start saving, what kind of habits you need to get into, and why you shouldn’t be scared to start saving towards your goals. 

What’s the first step to start saving?

The first step is to set clear savings goals. Be clear on what you are saving for, how much you need to save and by when. Having a clear goal will help you stay motivated and focused on your savings.

The key is to start with what’s realistic within your budget. It’s less about the amount at the start and more about building the habit.

How can someone figure out how much they can realistically save each month?

Create a budget: The best way to start is to list off all your outgoings and compare them to what you earn. Check what you have left over at the end of each month, leave some money for the fun stuff, and then set aside the rest for you to save.

Small steps count, so start early, even if it’s only small amounts. 

Do you suggest a specific budgeting method? Are there any other formulas?

Firstly, everyone is different and no formula is perfect. It’s about finding a plan that works for your circumstances rather than just aiming for a single figure. Having said that, a rule of thumb you can consider is to put 20% of what you earn towards savings.

When saving, don’t forget to plan for the rainy day – a good benchmark is to have enough saved to cover three to six months’ expenses. Also make sure to consider outstanding loans. Once you have your rainy day fund, you should consider paying off loans with higher interest rates before building up additional savings. To help make the right choices, you can talk to one of our Advisors across the AIB Branch network or use our Savings Calculator to find the right account for your savings needs.

Is it better to automate savings or do it manually at first?

Automate. Set up a regular savings habit by having an automatic transfer or standing order set up so that when you are paid, be that weekly, fortnightly or monthly, you automatically make a payment to your savings account. 

Do you recommend separate savings accounts for different goals, or one central fund?

Customers have told us they like to have separate accounts for different goals. You can nickname your AIB savings account after the specific goal you are looking to achieve. Renaming the account to the savings goal increases motivation, as you can see the progress you are making towards achieving that goal.

How do you suggest people prioritise saving for multiple goals at once (emergency fund, retirement, travel, home, etc.)?

The first savings goal is to make sure you have a rainy-day fund to cover unforeseen expenses. After that, it’s a question of balance between short and long-term goals. Meeting a Financial Advisor can help you to plan, review and adjust, should your circumstances change.

What about people who are paid in cash?

We would recommend that anyone who is paid in cash open a savings account and put money regularly into the account. That way, the cash isn’t as easily accessible, and you have a better chance of achieving your savings goals. It is also safer than keeping cash at home.

Should people track their savings?

Yes, review your goals and check in on your savings progress regularly. Celebrate milestones and adjust your savings plan as needed to stay on track towards your goals. It’s good to talk to an Advisor every couple of years to review your plans.

 How should someone with variable income (like freelancers) approach saving?

The same steps apply. However, for the automatic savings, you would be better off picking a level which you are always comfortable with. When you do receive extra payments, we would recommend that you make additional payments into your savings accounts.

Are there different strategies for short-term vs. long-term goals?

Match your savings to your timeline. If your financial goal is five or more years away, you should consider a long-term investment fund to maximise potential returns. For shorter-term needs, more accessible accounts are the better fit.

There are loads of supports available in AIB, with Advisors and also Digital supports. AIB are here to help you along your savings and investment journey.

Ready to take the first step towards your savings goals? Drop into your local AIB branch or visit AIB.ie to learn more.

Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland