Starting to save can be stressful. It's hard to build positive habits and avoid the temptation to spend. Did you know,Money.co.uk discovered that a third (34%) of UK adults have no savings or less than £1,000 in spare cash?¹

However, research from the Building Societies Association (BSA) suggests that despite the challenges of developing a savings habit, those who can save tend to be more optimistic about the future, have higher mental wellbeing scores, and even sleep better at night.² While 47% of non-savers are ‘mostly’ or ‘completely’ satisfied with their life, the BSA’s figures show this rises to 63% among people saving £300-399 per month.

One of the key reasons behind this positive impact on wellbeing is the financial security savings bring. When you start saving, you might be focused on putting aside funds for a rainy day – think of having to cover the cost of unforeseen bills like fixing a problem with your car. Building an emergency fund that’s worth between three and six months of your regular expenses can put your mind at ease, knowing you’d be able to cover any surprise costs that come your way.

Regular saving can also help you to reach life’s big milestones – like stepping onto the housing ladder, getting married, or retiring. For these longer-term goals, you could consider putting some savings into a cash ISA each month. With a £20,000 (£9,000 for a Junior ISA) annual tax-free allowance, you could grow your investments without paying tax on the interest you earn.

Saving for a rainy day and life’s bigger ambitions is important, but at Coventry Building Society, we’ve also found that putting aside funds for events and adventures can have a positive, powerful effect on your wellbeing.

Have you been eyeing tickets for your favourite singer’s tour, or dreaming of a sunny Christmas in the Bahamas? Our research has uncovered that individuals saving for shared moments with loved ones have a better sense of personal identity and improved social connections, both of which can increase happiness. 

We also discovered that saving for experiences creates longer-lasting happiness than buying luxury items.3 This is because these events can get us excited from the moment we commit to going – or as soon as the first penny drops into our savings account!

The message is loud and clear – by putting trust in your savings provider and building a savings habit, you can save for both rainy days and celebrate your sunny days too.

If you're saving for a wedding or looking to treat yourself to a new item of designer clothing, regular saving can help you reach your goals sooner.

Using ISAs are a great way to save for life's big moments, but consider setting up a separate account to build up your funds for those all-important times with family and friends. Our 12-month Regular Saver is a great way to save for those goals that are slightly further away. You can save up to £500 per month, helping you build a useful savings pot for something in the future. There’s a charge equal to 30 calendar days' interest on the amount you withdraw if you do need to access to your money.

Don't focus on your end goal either. Celebrating every milestone, whether it's £50, £100 or £1,000 saved, can help increase your positive mindset. Each achievement is a step forward, so give yourself a pat on the back when you hit these targets.

Becoming a savings expert isn't just about tackling daunting long-term goals; it's also about enabling you to build memories with loved ones. Saving for the short-term can really boost mental health and happiness.  Start seeing the benefits of saving today by taking a look at our savings accounts.