Build the habit of saving

Building up your business savings might not seem easy, or even possible, in the current financial climate. But it can have huge benefits for your business. Savings could help keep you afloat during hard times or allow you to invest in growth. Here are some steps you can take to build the habit of saving.

Why it’s good to save

Build a buffer

Savings can be your buffer for when unexpected costs, illness or seasonal lulls arrive. Start by aiming to save 1 months’ worth of business costs, and build on this until you have 3 or even 6 months’ worth.

Read our article for more tips on resilience and preparing your business for the unexpected

Paying your tax bill

Set aside money each month for your tax bill so you don’t have a big lump sum to pay out when the time comes.

Investing in growth

Whether you want to buy new equipment or technology, move premises, or create a marketing campaign – it all costs money. You can get funding to do these things. Or you can save up for them. Using savings to pay for things like this has its benefits. You won’t have to make monthly repayments or sell shares in your business.

Benefits of a business savings account

Separate pots

It’s a good idea to keep your savings in their own pot, and you can use a business savings account for this. That way it’s easy to see what you have in savings and what you have in your business current account for everyday spending.

Earn interest

You’ll earn interest on savings in a business savings account, whereas you normally won’t earn interest on money in a business current account.

Instant access

Some savings accounts allow you instant access to your money so you can use it when you need it. There are also savings accounts where you can earn a higher rate of interest if you keep your money in for a set amount of time. 

How you can build the habit of saving

Set up a regular transfer

Treat it like paying a bill. Set up a monthly transfer of money into your savings account so you’re not relying on remembering to do it yourself.

Track payments

When payments come in transfer some into savings. Even 5 or 10% will soon add up.

Regular review of contracts and pricing

Put time in your yearly calendar to review your contracts with suppliers. Do the same for reviewing your pricing. Put any money saved or extra profit into your savings account.

Read our article on setting smart payment terms and reviewing your pricing

Regular review of your outgoings

Check what you’re paying out each month. If there’s a subscription you’re not using you could cancel it and put the money into savings.

You might be able to save money on your energy bill, insurance, HR support or payment services with our partners. Check out our Business Support page for more information. If you end up paying less, you can put the money in your savings account.

Sell what you don’t need

You might have equipment you no longer need or use that could be sold on, with the money you make put into saving towards a new goal.

More support

Review our range of savings accounts

If business finances are a struggle for you at the moment please visit our support page