Top 7 Benefits of Saving through Payroll

Why should I start saving?

First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.

A report by the Financial Inclusion Centre funded by the Money and Pensions Service presents a worrying statistic that 22% of the population have under £100 in savings. 

The earlier we start saving the better, as it not only means security for ourselves but to help to support our loved ones after we are gone. If you haven’t started saving yet, then it’s not the end of the world – Stockport Credit Union can help you save through salary deduction. Still not convinced?

Here are 7 great reasons why we think putting a little aside from your salary is worthwhile

1/ It’s so easy

Nobody wants a complicated life and here at Stockport Credit Union, we believe the more straightforward the better. That’s why we’ve made it super easy to save directly from your salary. Saving in this way means the money has been put aside before it has even hit your bank account. You can see the amount on your wage slip and watch your savings grow in our online members’ area. It’s very easy to become a member and tell us how much you want to save by downloading our NIVO APP.

2/ Security for the future

One of the reasons it is best to start saving as early as possible is that we can never be sure what the future may bring. If you lose your job through redundancy or through illness, or you have to take time off work to bring up children, it is vital that we are able to provide not just for ourselves but for those who may depend on us, e.g., elderly relatives, children. Right now we do not, to put it mildly, live in certain times and it is those who have saved who are best placed to ride out the storm.

3/ Independence

Independence is another vital aspect of our mental health. With independence, we are much less reliant on friends, family, bank loans, unemployment benefits, and are free to make more choices about what we can do with our lives. Starting to put a little aside is a great move towards greater independence and doing it through payroll means you will barely miss it.

4/ Being free from debt

Debt can cause great anxiety, and that can cause a terrible strain on our mental health. When we are in debt we can be at risk of home repossession and have less money to spend on food and drink, our homes, cars, education, and training courses, and we find it more difficult to provide for those who may depend on us. By putting aside a little every week or month and creating a rainy day fund, it means that you can avoid debt when something goes wrong.

5/ Being able to buy a new home

Saving money allows you to buy things that you can’t afford regularly and getting on the property ladder is often seen as a vital landmark in life, and the more money we have, the earlier it is likely to happen. Saving money will give you a real sense of achievement when you manage to save up for the home that you want.

6/ Home Improvement

Be it buying a new television set, a new computer, garden maintenance, repairing burst pipes, broken windows, or sorting out leaks, home improvement is something that is a vital fact of life. Is your house in exactly the same state it was 5, 10, 20 years ago? Ongoing maintenance can be costly and is worth planning in advance for.

7/ Holidays and leisure time

On a lighter note, saving money means we have money more to spend when times are difficult. As the lockdown comes to an end, and pubs and restaurants start opening, the long months of lockdown seem to be coming to an end (hopefully!) Nights out with friends are not just good for our mental health, they benefit the local economy, and, by extension, the UK economy as a whole. A time when we can comfortably look forward to taking a holiday abroad seems a long way off, but why not start saving now? Money saved today is money to be spent tomorrow; why not spend it on holidays abroad? And remember, the more you save, the more you can think not just about the holiday next year, but the one after!