Saving money improves mental health: why ‘Twixmas’ is a good time to start
As Christmas Day comes and goes, many of us use the time between Christmas and New Year – known as ‘Twixmas’ – to think about our finances.
Did you know that one in three of us (31%) feel less stressed when we regularly save money? And almost a quarter (23%) of Brits focus on saving and spending wisely.
These findings were uncovered by HSBC research, which confirmed that saving money can improve your mental health.
Regular money saving habits
During the ‘Twixmas’ period, lots of people try to develop better saving habits for the year ahead.
In fact, nearly 9 in 10 people say they use at least one money-saving habit:
-
40% skip buying takeaway drinks
-
40% cancel subscriptions they don’t use
-
37% cut back on going to pubs, bars and nights out
-
35% plan meals to save money on office lunches
-
34% avoid eating out more than once a month
Why do we save?
Almost half of us (46%) are happy with our finances and save an average 23% of our income.
The top reasons we save are:
-
52% in case we lose our income
-
51% to cover for unexpected expenses
-
39% for holidays, house renovations or special events
‘Yo-yo’ spending
But some habits can make it harder to save, especially for younger people.
For example, 1 in 4 people aged 18-24 admit to ‘yo-yo’ spending, where they save one month, but splurge the next. This happens for 19% of people aged 25-34 as well.
Saving ‘dippers’
Another habit is ‘dipping’ into savings once a goal is reached.
Nearly 30% of 25-34-year-olds do this, compared to 10% of those aged 18-24.
‘Doom’ spending
Some young people also practice ‘doom’ spending, where they avoid saving for the future because they feel down about the current situation.
More than one in six (17%) people aged 18-24 admit to this, higher than the national average of 8%.
Pella Frost, HSBC UK’s head of everyday banking, suggests the ‘Twixmas’ period is a great time to review your finances and set goals for the upcoming year.
“Planning your financial future can be easier if you start by mapping out your goals, whether that’s the holiday of a lifetime, or boosting your rainy-day fund,” says Frost.
Easy ways to start saving
If you’re ready to start saving, we have plenty of money-saving tips, including ideas for cheap days out and details on the best discounts.
Creating a budget can also be a great way to help you put some money aside each month. You can use our free budget calculator to see where you can cut back.
If you’re on certain benefits, you may be able to open a government-backed Help to Save account, where you’ll get a bonus of 50p for every £1 you save over four years. You can even keep saving after you stop receiving benefits.
What if you can’t save?
If saving feels impossible right now, focus on paying off any debts first.
We can help you with everything from budgeting to making sure you’re getting all the benefits you’re entitled to, as well as advising you on debt solutions (some solutions are free, for others there’s a fee).
All of our debt advice is free and impartial and you can access it online or over the phone during our office hours on 0161 518 8285.
Gabrielle Pickard Whitehead
Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.
Related posts
24 Dec 2024
Budget-friendly ways to keep the kids entertained
23 Dec 2024
Some click-and-collect orders have also been affected
23 Dec 2024
Think you’re a bargain hunter? You’re in good company
20 Dec 2024
Get up to £10 back.