How to start saving ... Saving money in the UK.

Building up a buffer of savings is a great way to protect yourself against debt and insure against accident or injury.

Here's how to begin putting money aside for a rainy day.

1. Open a savings account: The first step towards accumulating some savings is to find the most profitable savings accounts that you can. Shop around among high street banks like Alliance and Leicester and Natwest, as well as using price comparison sites to find a good savings deal online. In the current climate, you should be able to find an account which is both high interest and easy access.

2. Pay off your debts: Saving isn't just about putting money aside - it's also about paying back any loans that you may have taken out so that you can emerge debt-free. Take some time to figure out how much you could put towards paying off your credit cards balance, since this can be one of the highest-paying investments you will make. You should also consider making one extra mortgage payment per year to help lower your principal.

3. Make a budget: Try keeping a strict record of your expenses over a period of a few weeks or a month. Writing down everything you spend should help you see where you should cut back. Once you've made those cuts, you'll be able to put the money you saved into a high interest savings account.

4. Transfer your credit card: Some credit cards can charge extremely high interest rates which will eat into your earnings. When transferring to a new card, make sure that you'll get the lower rate you're after for at least six month. You could also consider swapping your credit debt to a low-interest overdraft account or a 0 per cent credit card.

5. Review your bills: Take a look at your phone and utilities bills to check whether you're spending money unnecessarily. If they seem extortionate, there are some simple steps you can take towards cutting costs. Try lowering the temperature of your boiler and turning off the lights when you leave the room. Strange as it sounds, you could save hundreds of pounds a year simply by conserving energy. You should also review your insurance policies to check that you're not paying for more coverage than you need. To compare prices, get quotes from a range of providers of visit a price comparison site such as Beat That Quote.






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